The Up-Side of the Recession: High Net-Worth Divorces Benefit from the Economic Downturn
By Kluger Kaplan August 20, 2012
By Jason R. Marks
As the economy starts to rebound, there has been a lot of speculation about whether divorces, which slowed during the recession, will begin to rise. I recommend a different strategy – sell low!
There can be no doubt that traditionally high earners or high net worth individuals who are planning on divorcing can benefit from leaving the marriage during the recession when their overall income and/or net worth is relatively low. While taboo to publicize, it’s a good time to get divorced when your income is down or your net worth has deteriorated through no fault of your own. Unlike buying a stock, when you are getting divorced, the preference should be to sell LOW.
My high net-worth clients have generally made a substantial amount of money in their professions/businesses. They may not be good at being married but they know how to make more money. By setting support obligations and splitting the pie now, my wealthy clients can part ways with a lower support obligation and lower “out of pocket” expense because assets – stocks, securities, real estate – are still feeling the hit of the recession.