Unexpected Divorce

Hi Colleen:

So sorry for your client and her "unexpected divorce".  I used to be in the financial services business and the first thing that we were trained to do was to do a Needs Aanalysis.  This required both the husband and wife to be in attendance.  Many times, a wife would say that her husband took care of the finances and, therefore, it was not necessary for her to be there.  

I would insist, and in front of the husband I would tell the wife why she needed to be involved.  This was done in a light hearted fashion (although it was heavy stuff), but I made it clear that sometimes marriages did not last (whether by premature death or divorce) and it was important for both parties to have all the information regarding the finances.  If there was only one signatory on the checking account, I would recommend both.  The same for any other accounts.  I would recommend a meeting with a lawyer for a will to document exactly what would happen in case of premature death and also in case of a divorce.  If the wife had no credit, I would recommend that she started applying for cards in her own name.  I would make sure that there was enough life insurance on both parties.  However, I would always make the wife the principal (meaning that the policy could not be cancelled without her knowledge)

In other words, I made it known to the wife that it was important for her to be financially strong in her own right to deal with a situation like your client's  without stress and anxiety at least where the finances were concerned.     

I got a few thank yous when the "unexpected" happened!

I love a story with a happy ending.  It's too bad that she had to go through the trial by fire to get there but I'm betting she'll be better and stronger now.