To assert her financial contribution during divorce, Morgan calculated the market cost of her labor as a stay-at-home parent (nanny, cook, housekeeper). This reframed her non-monetary work into a tangible economic value, aiding in a fair settlement negotiation.

A common early mistake is for couples to try settling terms amicably before involving professionals. The spouse with less financial information often makes critical concessions without understanding their rights or the true value of the assets, leading to inequitable outcomes.

By deciding on the terms of their separation themselves and using a peaceful mediator to formalize the agreement, Morgan and her ex-husband avoided costly legal battles. The entire process cost them just $4,000, which they split evenly, showcasing a much cheaper path.

Before separating, create a detailed spreadsheet itemizing all necessary monthly expenses (insurance, housing, food, childcare). This establishes a clear "survival number"—the minimum income required to live independently—providing crucial financial clarity for planning and negotiations during an emotional time.

Instead of battling over individual assets, couples should first negotiate the overarching ratio of their post-divorce living standards (e.g., 1:1 after a long marriage). This principle-based agreement provides a clear framework for dividing assets and support, preventing fights over minor items.

A growing trend in prenups involves clauses designed to protect second-generation wealth. Parents who plan to leave significant assets or provide ongoing financial support are now insisting their children get prenups to ensure family money doesn't become divisible marital property in a divorce.

A person going through a divorce is often in a state of trauma, unable to focus on long-term finances. Effective advisors act as triage specialists, first solving immediate problems like housing and cash flow before delving into complex wealth management strategies.

In some states, divorce courts separate "enterprise goodwill" (a marital asset) from "personal goodwill" (non-marital). This means a business's divisible value could be far less than its market sale price, a crucial and counterintuitive distinction for entrepreneurs.

Divorce can be financially devastating, potentially erasing decades of wealth through legal fees and asset division. Therefore, choosing a life partner is not just an emotional decision but a crucial financial one. Ensuring financial compatibility and considering a prenuptial agreement are vital risk management strategies.