Frank is 45; Stacy is Follow Laurence Kotlikoff and get email alerts Your feedback matters to us! Of course a lot depends on Frank being able to work until More precisely, is Frank setting himself up to have a much higher living standard than Stacy?
Second, economics is now in a position to help people understand what is and is not a fair divorce settlement.
Stacy has never been great with numbers. This is what she gets to spend on herself through age after providing the kids with the same living standard as she enjoys and after covering her taxes and housing expenses. As a result, Frank is thinking of upping his alimony payment.
Frank is offering Stacy the house and half their regular assets. Stacy asked him out and, boy, what a wedding and what a great marriage until, well, things changed.
They live in Saint Louis with their two girls, ages 7 and 3. Frank also realizes that he barely escaped waging a terribly expensive and unjust legal fight based on his mistaken assessment of what was really fair. Economics offer a clear way to think about divorce settlements.
On the contrary, the company owes me money! Wasting money on lawyers in reaching a divorce settlement is losing, not seeking alpha. Their main goal now is settling their affairs without declaring war or wasting their assets on an extended legal battle.
After reaching this agreement, Frank and Stacy start helping each other tweak their plans and find they can raise both of their living standards by making smarter decisions regarding Social Security and saving via retirement accounts.
Trust me, this is a great offer. Disagree with this article? He can spend this amount annually, straight through age his maximum age of life and proper planning horizon after he has covered his taxes, child support, college tuition and rent.
My money has to last longer. Turns out that Stacy is right. To report a factual error in this article, click here. This article updates a piece I wrote for Forbes in There is now economics-based divorced software that can save you from an exorbitantly costly divorce war.
You just run the program for Frank and Stacy as separate single individuals and compare their living standards under whatever divorce settlement is being contemplated. Want to share your opinion on this article? Or is Frank being a cheap fill in the blank? Take Frank and Stacy Loveless.
And third, divorce can be a win-win proposition. Frank claims this is more than fair.6 days ago · First evidence that soot from polluted air is reaching placenta Date: September 16, Source: European Lung Foundation Summary: Evidence of tiny particles of carbon, typically created by.
The consequences of having too many men, now coming of age, are far-reaching: Beyond an epidemic of loneliness, the imbalance distorts labor markets, drives up savings rates in China and drives. (This article updates a piece I wrote for Forbes in ) Economics can't say what's fair, but it can help with divorce settlements by showing who is.
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