Divorce should always be considered a nuclear option – something that should only be done when all attempts to save a marriage have been exhausted.
However, when it is clear that divorce is inevitable, an individual can do certain things to plan ahead that puts them at a huge advantage. That was the point Cordell & Cordell Principal Partner Joe Cordell made in his recent appearance on Phoenix Money Radio’s “Business for Breakfast.”
Generally, divorce is a solo enterprise regarding a partnership of two. While the divorce bar and divorce theorists have long promoted the idea of collaborative divorce where parties negotiate with mediators and reach a settlement that is mutually satisfying, that ideal often isn’t realistic.
“The nature of divorce is that it’s ugly and there is a lot of emotion involved and there’s this maelstrom of resentment, betrayal and often a variety of other factors,” Mr. Cordell said. “… So as it ends up, each party needs to fend for him or herself.”
For example, when an individual does have the luxury of knowing that divorce is coming, it might be advantageous if the market is favorable to liquefy assets in order to buy out the other party’s interest in a business or interest in a retirement plan.
“Often, the party that wants to retain those items is found suddenly in a position where they didn’t plan or couldn’t plan and the only option available to the court is liquidation in order to create the money in order for one party to be paid off, and usually those are not under conditions where the assets drive the most value,” Mr. Cordell said.
Click below to listen to the full interview.