CASE STUDY
Divorce
How your money can be taken from You Instantly by corrupt lawyers and courts!
Divorce - 1 every 13 seconds!
According to the web site Maritalstatus.com, the average cost of a divorce now runs about $20,000.
Divorce legal fees are very expensive, and families are left financially devastated in many cases. Divorce is not only an emotionally trying experience, but it can be a financially devastating one, as well. From legal fees and alimony payments to the division of assets and possible tax consequences, the costs can grow even higher. The expenses of a divorce are unlikely to deter a couple that truly needs to split, but experts say you should still be aware of just how high the bill can get. In some cases, the financial consequences can set you back decades.
COUPLES BEWARE!
50% percent of first marriages, 67% of second and 74% of third marriages end in divorce.
The first financial burden is the separation of one household into two. While one person may remain in the home, even if only temporarily, the other has to find a new place to live. Not only are there two rents or mortgages but two cable bills, two utility bills, two health insurance bills and there is no longer the bulk savings on things like groceries. Almost overnight, the living expenses for the couple double while their combined income likely remains the same.
Capital gains can be a killer
Divorce can come with big tax bills. In many cases, when a couple splits, they may immediately start scrambling to claim or divide assets. It’s not uncommon for a spouse to run and clear out bank accounts, cash in CDs and sell off stocks, bonds and other investments. Blinded by emotion and fear, they can be hit with a harsh reality when tax time comes around.
Spousal Support
Alimony is usually paid to the less-advantaged spouse and is often seen as a temporary measure to help them stay on their feet during the separation. In general, the “resource spouse” might have to pay 50% of their income minus 40% of the income being earned by the non-income spouse. Others say it often works out to ensure that both homes have around the same average income.
Legal Fees
No matter how amicable a divorce may be, there are going to be significant legal fees. Attorney fees add up quickly because, when combined, the couple is paying for not just one, but two legal teams. The more a couple disagrees and fights it out in court, the more expensive it becomes. Throw in a custody battle and a fight over alimony and assets, and legal fees could easily top $100,000. Things get even worse and more expensive when the spouses stop talking to one another and communicate only through their attorneys.
Imagine this scenario: The "love of your life" turns out to have married you for your money. She (or he) seems well intended at the beginning, but "things" happen with the marriage and your spouse files for divorce after a year or more of marriage, citing irreconcilable differences. If the marriage survived for years, the spouse could argue for a larger share of the mutual assets arguing that "value" was enhanced as a result of spousal support and encouragement. Most lawyers recommend a prenuptial agreement to set out the terms for separation in advance. Many couples resist such agreements because they are essentially plans for failure. Not to mention the up-front costs and eventual litigation costs once the marriage does fail.
Every day, nearly 7000 people get divorced: that's 1 divorce every 13 seconds! The legal industry rakes in roughly $140 Million each day in divorce fees. That's $51 Billion each year!
DON'T be a financial victim of a divorce settlement and make the lawyers even richer. The STS program eliminates the need for ALL OF THE ABOVE FEES! Protect your assets, either BEFORE you get married or during the marriage. The marriage may dissolve, but the TRUST survives. Value is maintained for all certificate holders. NO NEED FOR A PRE-NUP! This is the best prenup money can buy!
Protect yourself in advance with the STS program. Remember, if YOU don't OWN anything in your own name, then NOTHING can be taken from YOU. The STS program protects your financial equity. In divorces, the couple separates, but the equity in the Trust cannot be taken when protected within this strategy.
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Here's How NOT to do it!
Read about the personal divorce lessons learned by the managing director and CFP of a Financial Management company. Even an "expert" can be a financial divorce victim when relying on a failed and expensive statutory system of lawyers, counselors, and asset division that triggers unnecessary taxes. The STS program would have protected both parties to this "grey" divorce.