Financial Planning for the Possibility of Divorce When you think of fall, do you think of back to school and leaves changing color? Fall is also the time of the year that the television networks roll out their line-up of new shows. One of the new television shows is called "Once and Again". A man meets a woman and they are attracted to each other but this show has a twist. They are both coping with recent divorces. We see how they are dealing with being single again and the pain and uncertainty that they are feeling along with their teenaged children. Although the man and woman are experiencing genuine emotional hardships, in typical Hollywood fashion these families have seen no appreciable change in their lifestyles. Their houses are spacious and well decorated, and both the leading man and the woman drive late-model expensive cars. The reality, of course, is much different. In the United States the divorce rate is about 50 percent, and in California nearly two out of every three marriages end in divorce. Divorce changes the financial situation of both spouses, and unfortunately it usually hurts the woman the most. So for both a wife and a husband in a marriage, it is important to be informed about your spouse's finances. If you remain in the dark about financial matters until you are faced with a crisis, you may regret it. You should know how much it costs for your family to live for a year and how much income you need to cover these expenses. You need to be aware of what your family's investments are and which of these investments could be easily turned into cash. You should know what retirement plans your spouse has and also what your family's health and life insurance policies are. Make sure you and your spouse have current wills. Finally, remember that both spouses are liable for the taxes on a joint return. So you should never sign a tax return or any other financial document without reading and understanding what it says. With luck, you and your spouse will spend your golden years together. But just in case, do some homework.