As many Californians know, Facebook recently went public. This event created 850 new millionaires. A few experts speculate that such an occurrence will also bring a surge of divorces. According to one source, this occurred shortly after Google and Cisco went public. What is important to consider is that with a new surge in wealth comes more issues of property division including the division of assets, retirement accounts, artwork and bank accounts.
The speculation that an increase in wealth equals an increase in divorce may seem in direct opposition to common assumptions, which associate financial distress with separation. Yet some speculate that an increase in cash can also lead to tension in the home. In addition to the Google- and Cisco-affiliated people experiencing marital discord, this also happened during the initial dot com explosion and also during the 2007 New York real estate market boom.
One expert speculates that a surge in cash makes couples less financially dependent on each other. This in turn lessens fears that often accompany divorce — namely, the lingering threat of returning to a single-household income. Others add that any life-changing event, positive or negative, often leads to other major life changes, such as divorce. And then there is the fact that more money means being able to afford the costs of divorce.
Whatever the case, the complex nature of property division does not get easier when one gets wealthier. In fact, sudden surges in wealth could mean a greater loss to that economically advantaged spouse in a divorce. It is extremely important to consider all factors of property division when obtaining a divorce, no matter what life unexpectedly brings.
Source: Huffington Post, “Facebook Divorce: Will Facebook IPO Create Surge Of Silicon Valley Divorces?” Natasha Burton, June 3, 2012
