How sharing your stories can cost a minor fortune!
In a recent case, I had engaged with a couple that were starting to work through the details of the financial split. Even though the combined net worth of the couple was impressive, the after-tax and after – fees costs started to look more daunting than first realized. One cost that the couple did not consider were the fees of their sympathetic advisors.
The couple started to realize that whenever they talked to their legal counsel about how rotten their soon-to-be ex was, the cost was at the hourly rate of the lawyer, which in this case was $500/hour for His and $525/hour for Her’s. Because each had to have accountants, the cost for that expert advice worked out to be $375 and $400 per hour each. It did not take them long to realize that the cost of the divorce could get over $20,000 in no time, for each of them! If things had to go to court, at over $12,000 each time they were in front of a judge, this pragmatic couple realized that they should be more amicable or better yet, invest into a counsellor at less than $200/hour to perhaps save their marriage. In one joint “zoom” call meeting that lasted one hour, the total bills were: ($500 + 525) + ($375 + 400) = $1800.00
This true story ended up with the couple reconciling, albeit, clumsily. They realized that the fight was a not worth the money. Will the marriage last? Neither of them knows, but for now, they are willing to make accommodations to each other so that neither one of them will have to go back to work as they are both well into their 60’s. Also, they both came to realize that finding accommodation in this high rent economy is next to impossible.
I am attaching a link from the Globe and Mail that is about the financial risk of divorce as it pertains to the marital home.
Divorcing parents face tough choices amid sky-high real estate prices.