the well-th report
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intentions don't always work out
The number of divorces in America has been increasing steadily over the last few decades for many reasons, but 2020 saw another spike in divorce rates, presumably due to the pandemic. Anyone living with a spouse or significant other knows this past year really put your relationship to the test. Learn the details of this latest trend seen around the country.
By April 2020, the interest in divorce increased by 34% in the U.S., with newer couples being the most likely to file for divorce.
Professionals who study this predict a continuation of this trend, anticipating that divorce rates will increase between 10% and 25% in the second half of 2020 (those numbers aren’t out yet).
20% of couples who had been married for five months or less sought divorce during this time period, compared with only 11% in 2019.
In the most serious of circumstances, these tensions can lead to violence. 2020 saw a 9% increase in outreach to the National Domestic Violence Hotline compared to the same period last year.
Source
Another way of understanding this timeline is through the collective disaster response curve, according to National Law Review. The curve shows increased energy and a sense of community cohesion in the period immediately following a disaster, but after a few weeks, the energy wears off, and disillusionment and depression can set in. At this time is when couples may begin to struggle.
collective disaster response curve
Source
Divorce is rarely easy and never pleasant; the best you can do is to be prepared. Below, we’ve provided some important things you can take care of right now if you're going through a divorce to ensure a smooth transition from a financial standpoint.
Open individual checking and savings accounts for yourself and freeze any joint accounts so neither party can access them without permission until agreements are in place. Be sure things like direct deposits or automatic payments are routed properly.
Request a credit report to ensure all joint accounts are closed. You may also wish to contact credit card companies to freeze accounts, open individual accounts, and end responsibility for any future charges on shared cards.
Change the passwords and PINs on your accounts.
Confirm your health insurance status and that of your children; you typically can remain on a spouse’s policy until the end of the month and then may have an option to COBRA, or enroll through your own company even in an “off” time of year through a “change of circumstance” exception.
Update emergency contacts and medical records, assigning a person to be notified in an emergency and removing your former spouse.
Take a good hard look at your budget and monthly expenditures and be realistic; this exercise will help in settlement discussions.
Consider what you post on social media; anything sour may come back to haunt you in a settlement discussion. You may wish to block your ex-spouse or simply stay off social media until settlements are made.
Next, you’ll want to connect with your financial advisor and work with them to identify any other professionals you will need to bring in to help you through this process. Here are some things you may need to do with your financial advisor and other professionals.
Update the beneficiaries on all your brokerage accounts, retirement accounts, life insurance policies and Transfer on Death (ToD) accounts
Revoke and update any existing Power of Attorney, Health Care Proxy, and Living Will
Retitle assets into your name
Establish a QDRO process to split retirement accounts per agreement; this is something that you will likely need an attorney or a financial advisor to assist with.
Feeling uneasy? Your financial advisor is there for you to answer any questions you may have. Don’t hesitate to lean on them.
