Divorce Analysis Blog

Advanced Ideas About Divorce and Money

The Truth: Realities About Divorces Part4

Your standard of living will, most likely, drop, the question is: how much?:

Married couples realize economies of scale by sharing costs. Think about the valuable things married couples share: housing, cars, even cable TV. There are also intangibles such as child care time or time spent cleaning the house. Once you are separate, you will each need to pay for these necessities separately. In the absence of more income, these costs will comprise a larger slice of your combined income. Consequently you can expect at least less savings, and possibly, a reduction in your standard of living.

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April 13, 2015 Posted by | divorce | Leave a comment

The Truth: Realities About Divorces Part 3

Since you will be selling all of your possessions, it is important to find the highest bidder:

At a basic level, the financial processes behind a divorce involve both parties valuing their assets and liabilities. We like to think of this process as equivalent to you selling everything you own (including debts!). The ultimate buyer could be a third party, your spouse, or maybe even yourself. However, the difference lies in the fact that all of your possessions will be marked to market. Mark to market is a finance expression that means you will realize any gains or losses in the value of your possessions. In other words, you will cash out of your holdings whether you are winning or losing.Divorce picture

April 1, 2015 Posted by | divorce | Leave a comment