Divorce Proof. Protecting Yourself Before You Walk Down the Aisle.
While professional athletes get married at the same rate as the general population (approximately 75%), the divorce rate is significantly higher (as high as 80% according to some recent studies). The NFL Players Association released the staggering statistic that more than 50% of marriages of former professional football players end in divorce during their first retirement year alone! While other sports leagues don’t necessarily have numbers quite as extreme, the same dynamics are at play for all elite athletes due to the unique lifestyles created by a life in professional sports.
Spending a great majority of the year on the road or sequestered in training and throughout the season is taxing on the most solid of relationships, so it is no surprise that divorce is more common for couples living a lifestyle controlled by a sports calendar.
This harsh reality makes it pertinent for athletes to put a financial plan into place prior to walking down the aisle. Financial planning is not only in preparation for the worst case scenario, we work with our professional athlete clients to ensure they are protected for all scenario. This means to not only be prepared in the case of divorce – but to also be prepared for your growing family’s future as well. A solid financial plan, that may or may not include a prenuptial agreement, living trust, irrevocable trust, dynasty trust and qualified personal resident trust will keep you protected.
Without a financial plan in place prior to getting married, losing half of your net worth to your former spouse is a distinct possibility in the case of divorce. This tremendous level of loss leads to an increased risk for bankruptcy in many cases. A consequence that can be avoided with simple steps, like putting money made prior to getting married in a separate trust, ensuring that all of money made prior to saying “I do” is not considered marital property.
Our PIMS team works with you to stay practical and be prepared for all scenarios. We strive to take the discomfort out of future planning conversations so you are prepared for the unexpected.