Getting your Assets to act as Divorce Loans

Falling in love can have similar neurological effects to those that cocaine induces and can give you just as much of a financial burden, if it doesn’t quite go your way. Divorce is tough. Divorce financing can prove to be even tougher, which is why it’s paramount to understand what happens to your assets when going through a divorce. You’re already at risk of a Broken Heart Syndrome so make sure you get all the information possible about your financial future.

Divorce Statistics


–  In the US there are 100 divorces every hour.

–  Money is the 2nd common reason couples divorce.

–  The world’s most expensive divorce was estimated at $4.5 billion.

–  Einstein’s Nobel prize money went to his ex-wife when they divorced.

What Happens to Assets in a Divorce?

Divorces can get financially complex quickly. Identifying which assets are your own property and which are martial property, is something that can add a lot of confusion and frustration into an already stressful process. Assets that you owned prior to your marriage whether it is inheritance from a family member or a diamond ring will be identified as separate property, however, these assets can become recognized as martial property if they became intermixed with your martial finances. All assets attained during the marriage are regarded as martial property, regardless of which spouse’s name the asset was acquired within.

It is important to keep in mind that ownership over different assets is subject to different laws in each state. For advice regarding this factor, it is best to consult with a qualified divorce attorney.

What exactly is defined as martial property? Martial property is made up from all income and assets that were acquired during your marriage. These assets can range from cars, antiques, art real estate and many other financial assets. For collectible assets is it recommended that, despite how complicated and rambunctious the discussion can become, these are divided without intervention from a third party.

Some of the Most Expensive Divorces in the World

Mel Gibson’s divorce from Robyn Moore Gibson – $425 million

Roman Abramovich’s divorce from Irina Abramovich – $300 million

Michael Jordan’s divorce from Juanita Jordan – $168 million

Neil Diamond’s divorce from Marcia Murphey – $150 million

Rupert Murdoch’s divorce from Anna Murdoch – $100 million

Hulk Hogan lost 70% of the couples liquid assets of $10.41m in his divorce from his ex-wife Linda, as well as 40% ownership of his companies.

Rupert Murdoch lost a 3 floor penthouse apartment in New York estimated to be worth $44m.

Information sourced from

Student Loan Repayments during a Divorce

During a divorce some debts can be uncovered which you may have forgotten about. When it comes picking out the financial parts of a divorce, student loans can be one of those debts that has become more commonly peripheral, dependent on circumstances. It can be unclear as to who that debt belongs too; whether it is martial or separate. Factors that can help in categorising who the student loan debt belongs to… What the student loan money was used for (If it was used for equipment and educational resources than a claim could be put forth that it is separate debt. However, if that money was used for living expenses for the couple it can disputed that the debt is martial.)

The degree earned by a spouse can be considered as martial property (this is a law in a few states, including New York) and the debt that was incurred as a result of obtaining the degree can too be considered martial. What the potential earnings of a partner are after the separation is another factor that can contribute to deciding who the student loan debt belongs to. Having a degree is something that affects a person’s potential income and is also something that will be assessed by a vocational expert. A student loan can affect a spouse’s exposure to tax and so dependent on the benefits or incursions inhibited by that debt it can affect its distribution.

Funding a Divorce

Funding a divorce can have a huge impact on your finances and is a time when some of your assets can reveal themselves to be their most useful. To financially cut corners and make decisions without legal advice is an ironic practice found in the fine art of selling yourself short in the long term. If you do not fund your divorce plans appropriately you can come to find yourself losing out financially later on.

It can be hard to come up with the funds required to substantially finance a divorce to the point that your happy with. There are various options including loans from friends or family, savings and investments, loans from a bank or alternative lender. More risky funding strategies like credit cards or remortgaging property are viable, but also come with potentially punitive interest rates or the loss of your home. It may also be possible to defer paying costs until a settlement has been reached with certain specialized law firms.

About the Author:

Adam is a freelance writer that focuses on luxury asset trends for Borro Private Finance.