You are Divorcing your Spouse not Your Money
“You take the house I will keep the retirement account.” This is a common bargaining chip that many people use in a divorce, but they may not understand the implications behind such a bargain. As a Certified Divorce Financial Analyst I hear this frequently. What people do not understand is that while they both might be of equal value they can have serious long term affects based on what you choose. The bottom line is, you should consult an attorney if you do have any questions on this topic and you should always see what the financial impact of the choice you are making years down the road could be.
We have seen several times a proposed case while it seems evenly distributed actually leaves one spouse with almost triple in value years down the road. Bottom line is certain assets do certain things, they grow in different ways, they have different tax implications and if you are not informed you could be divorcing your money right along with your spouse.
Alana is Certified Divorce Financial Analyst and co-founder of the Women's Education & Leadership League. Her organization helps women find financial literacy through free resources, seminars and mentorship.