January – The Divorce Month?

Divorce filings tend to come and go in cycles. Yes, couples choose the path of divorce all year round but some months result in more filings than others, hence how January has been coined the “Divorce Month.”

Records show that there is a spike in the number of divorce filings in the month of January.   Experts believe that this trend boils down to one main theme: couples do not want to divorce during the holiday season. According to an analysis of divorce filings by FindLaw.com, a legal-information website, between 2008 and 2011, divorces spiked in January, continued to rise through February, then peaked in late March.

Divorce is difficult financially, emotionally and mentally, so for most families they strive to preserve the holidays for their children and other family members. While there are other reasons couples may chose to wait to file for divorce such as starting the New Year with a blank slate, the New Year may also have tax advantages for filing status as well (for specifics you should consult your tax advisor or accountant) the idea of maintaining some normalcy for the holidays tends to be the driving factor in delaying.

Divorce has more pronounced effects for women than for men. In the 2012 report from the U.S. Government Accountability office, it found that women’s household income, on average, fell by 41 percent with divorce, almost twice the size of the decline men experienced.

If you find yourself in the “Divorce Month” and you are not sure what to do next, follow this simple step-by-step guide to begin preparing for the road ahead.

  1. Decide whether to hire an attorney or use a mediation firm
  2. Gather Financial Asset Information
    • Monthly Mortgage, Estimate Fair Market Value, Interest Rate
    • Financial Statements for bank accounts/savings accounts/retirement account/college savings
  3. Gather Financial Liability (Debt) Information
    • Car Payment/Payoff Amount/Interest Rate
    • Credit Card Balances
    • Tuition Payments
  4. Budget: Start compiling a list of your monthly expenses to analyze your monthly cash flow
  5. Call your financial advisor. If you do not have one, find one! I would love to help and financial consultations are of no cost.

The next few months will be long and tiring. There may be moments you do not know how to plan for the future, remember one step at a time.

Let’s talk soon!

Maleah