Divorce often comes along with a fair share of arguments. Even the most amicable of couples, will likely disagree about a few issues related to property. Property more than just a house, it also includes bank accounts, retirement assets and investments. Often times, the amount of money a couple has effects the level of discord between them upon separation.
Couples with a high net worth
Business Insider discusses the impact of wealth on divorce arguments. Some people believe that the more wealth a couple has, the more contested they will be or the more arguments that they may have. The more money that there is, the more each has to gain or lose.
However, other studies have shown that couples with a net worth of over $5 million actually are more likely to resolve issues without litigation or major disagreement.
Speculation indicates that this happens because couples at this level of wealth no longer fear for the impact that divorce could have on their finances. Regardless of how the split goes, they will likely still have the money they need to keep living their current lifestyle. Thus, when these couples divorce, they usually tend to fight over intangible things like social status rather than money.
Couples with lower net worth
Couples with a net worth of $1 million or less often fight quite a bit over money. and property. This may be due to feelings of financial insecurity. One wrong move in a divorce could potentially cost a person a good chunk of their life earnings or savings, which puts a lot of pressure on both parties when crafting agreements.
We have written this to balance your expectations when contemplating divorce. It is important to consider the financial impact of a divorce.