Latest / The Jon Sanchez Show / Divorcing After 50? The 7 Financial Steps You Need To Take First
Transcript
- Jon G. Sanchez: Good Monday afternoon to you. Welcome to the John Sanchez show on News Talk 780K, which it's a great Monday. my goodness. Well, the month of August is over. How about that? Have you noticed the tree's starting to turn already? I know. I know. It's crazy. Before we know it, it's gonna be Thanksgiving and then Christmas and then the year's over. We get on this Dan Hill slide. Once September or once August is over, it's like, my goodness, the time goes by so doggone fast. Well, you know what? We get to spend the next hour together. That's all I care about. That is my focus for you. Thank you so much again for joining me. I hope you had a great weekend. All right. Let me let me tell you what I have lined up for you this afternoon. We're gonna, of course, recap of what happened today on the street. A little bit of a rough session today, and no surprise, of course, after US Central Command confirmed that the US struck two struck two rocket launchers on Iran's Larry Island yesterday, and then we had some retaliation by Iran firing some missiles that were Luckily intercepted. I believe they were pointed towards Jordan. And so that created oil prices to go up and the stock market to go down. Pretty simple. But you know what? That's the way it is. It happens. We have those couple days where it seems like things like that happen, and then things kind of get back to normal. So we will see what happens. Not concerned about anything at this point. But after we'll go through the stock market recap, tell you how we did for the month. talk a little bit about bond yields, of course, one of the big subjects of the month of August. Then we're gonna get into the topic of the the afternoon. And always try to bring you a financial planning related topic on Mondays. And I've titled today's show, The Gray Divorce Seven Financial Moves You Make Before You File. You know, we all know this. Divorce is difficult at any age, but divorcing after age 50 can completely rewrite your retirement plan. So today we're gonna be talking about the grade divorce and seven financial steps you should consider before anyone files paperwork. I'm saying anyone, both parties here, from retirement accounts and social security to the home, health care, taxes, and of course your estate plan. It's a it's a rising situation, right? The odds are you know, over age 50, we're seeing you know, significant amount of divorces. I think last stat that I saw was about 52% of marriages ending in divorce. And then marriage number two and marriage number three have even less odds of succeeding, unfortunately. And again, it's divorce is something you don't want to wish on your worst enemy, but it happens, and we need to be financially prepared for when it does. And that's what I hope to to accomplish with you this afternoon as we go through the gray divorce. All right, let's get down to today's stock market activity. Like I said, things started a little bit on the rough side in the pre-market session. It just kind of continued that way. We we never could really garner. Any attention you know to the upside whatsoever. We had no economic reports on the calendar. Earnings season is over. of course, Friday's you know highly anticipated Jackson Hole, Wyoming speech by Treasure or excuse me by Federal Reserve Chairman Kevin Worst. Keep on calling Treasury Secretary. Kevin Worst didn't really reveal much other than, yeah, the Fed's concerned about inflation. Covered that on the show on Friday. you know, so the market's kind of kind of Trying to sink its teeth into something positive at this point. But like I said, really light news other than the Iraq situation. So we finished with like I said, very you know small loss on percentage basis, at least on the SP and the NASDAQ side. But the Dow finished with a decline of 374 points, point seven zero percent, closed at fifty-three thousand one eighty-five. NASDAQ just a 32-point loss, closing at 26,370, and the SP 500 coming down 26 points or 0.33%. To close at 7,686. oil prices again strong, $2.45 rise, $85.83 a barrel. Gold down $48.60 to $4,479.80 an ounce. And uptick in bond yields. That's also pressure to the market. Four basis point increase on the 10-year now to yield a 4.76%. You know what's amazing? Tally the numbers for the month of August. We're only up one basis point on that 10-year treasury yield. So, you know, found that pretty, pretty you know, amazing. Now, if you if you look at the bond market on the monthly basis for the other maturities, a little bit different story. As I keep saying, and I really emphasize this Friday, we had a lot of, especially towards the end of August, a lot of periods where the shorter end of the yield curve, the shorter maturities, the two, the threes, the fives, et cetera, really seeing the pressure. Now, the beginning of the month, we saw the pressure on the 30 years, so the longer date of maturities, but the shorter end, that's where we saw most activity in the month of August. And again, that is the area that is the most sensitive to what the market is anticipating and the bond traders are anticipating as far as the next move by the Fed. So if you see those yields jump up, that's the street telling you, hey, we're pretty confident the Fed's gonna raise rates. There's now predictions out, you know, thirty-five, forty percent probability as of Friday. I didn't see today's number that we're gonna get a quarter percent increase in September. Now some are calling for the same thing around December. So maybe you know, possibly a half a percent Going forward for the rest of the year. But we will see. Of course, it's a fluid situation. But back to my point on the monthly basis, as I said, the 10-year was only up one basis point. But if you look at the two-year on the for the month of August, it was up six basis points. The three-year up five, the five-year treasury was up five basis points. But the 30-year, which again was very strong and really rising and a lot of concerns there, it all actually lost on its yield for the month of August. down three basis points and that yield today closed at five and a quarter percent. So very interesting to see how it has switched again from the longer dated maturities having more pressure to now the shorter dated ones. All right. So let's go back to the the situation as of today. Axios reported this afternoon that the president's considering limited strikes aimed at preventing Iran from recon reconstituting its capabilities to attack ships in the strait. so again that helped us out a little bit on the market side, but again Kind of the damage was already done. Nvidia was a decent performer today, up at $2.95, 1.36% to a close of $2.20.50, among the top semiconductor standouts after last week's earnings-driven surge. CrowdStrike had a good day today, up $12.60, 5.77% to $231, extending its post-earnings advance to finish as the top-performing SP 500 component. Google had a little bit of pressure on it, down seven dollars and forty-seven cents, two point one eight percent to three thirty-five forty-one. Amazon also was a bit of selling pressure today, down two and a half percent or six dollars and sixty-six cents to two fifty-nine seventy nine, after the Wall Street Journal reported that the Federal Trade Commission, the FTC, plans to file a lawsuit against Amazon for some pricing issues. Tesla was a standout, nineteen dollar and twenty-six cent increase. Closed at 36801, climbed to back above its 50 day moving average, which was $359 and 81 cents. let's see. gotta mention this. the utilities. Boy, boy, what a mess is going on here. So I believe it was Friday. I don't think it happened over the weekend, but I think it was on Friday, but it made all the headlines today. The b basically the the California government told PGE and Edison. And I'm sure, you know, any other utility companies, but there's not many others, that here's the situation. There's no limit on what people can sue you for if your equipment caused wildfires. Now they were trying to cap this, of course, right? This has been a on again, off again, as all these fires over the years have have have been created, etc., by the equipment. But but now not quite the case again with this fire California wildfire legislation. So That really pressured these stocks. I counted three downgrades today on PG and E. The stock finished down twenty percent, three dollars and thirty-two cent loss to thirteen dollars and twenty-eight cents. Edison International, twenty-three point one percent give up, down sixteen dollars and twenty-one cents to thirty-five dollars and ninety-six cents. And you know, I'm curious now, bear with me one second, because I wasn't prepared for this, but I want to see what this pullback did to the the yields on both of those companies. So let's take a look here just real quickly. So PGE, yeah, with that sell off today. That now brings the let's see, brings the yield. Come on, computer. Doug, that's right. They they eliminated their yield I've or their dividend. Let's see about Southern California Edison. Let's see what that did to that one. let's see. Don't know if we have the same situation there. Nope, that brings that yield on Edison now with this pullback in the stock to six and a half percent. So, well, these utilities are getting back to where they were years ago when I was a brand new broker and we used to call these the widow stocks, right? You could put anybody that had safe and secure money into utilities. Those days, of course, long gone because we didn't have the wildfire situation like we did back then. All right. let's see. Who else did I want to mention? defense stocks, weakness across the military contractors, pressured the industrial sector, SpaceX, up two dollars and twenty-five cents, kinda in that group to one forty three seventy five. But Home at Aerospace down 7.5%, $19.94 loss to $244.90. And then finally, Corporate News Aeon, the big insurance company, lost 9.58% or $34.06 to $321.34 after the company agreed to acquire a company called USI Insurance Services for about $17 billion in cash. All right, where do we set on a year-to-day basis? Well, the Dow's up 10.7%. SP is higher by 12.3%. The NASDAQ rising 13.5%. So we're pretty close here. And then the Russell 2000 still leading the pack with a 19.1% increase. All right, you're now up to date. Like I said, wasn't a lot going on today besides the Iran news. So I'm going to get an early start on our topic. Again, divorcing after age 50, the seven financial steps you need to take first. But first, let's just turn it over to the voice that I always love hearing. And that is the wonderful Kristen Snow, the Right Now Traffic Center. Hello, Kristen. Welcome back to the John Sanchez Show on New Stock 780 KOH. All right, once again, a a little bit of pressure on the Dow side today. 374 decline, 0.70%. NASDAQ lost 32, the SP down twenty-six. Well, I started to tell you this and I got sidetracked, so let me go back to it. And that is how did we do for the month in the market? Well, the Dow gained just a little above one percent for the month. That's the fifth consecutive monthly advance, by the way. So pretty good number there. It's also the boot chip's fifteenth positive month in the last sixteen months. Now there's a nice little record. SP 500 for the month of August rose a 2.6%. and the SP, or excuse me, the NASDAQ gained a 3.9. So 3.9 on the NASDAQ, SP up 2.6, just a smidgen above 1% on the Dow Jones Industrial Leverage. So both the SP and the Dow, by the way, reached all-time highs earlier in the month of August. All right, let's get to our topic. Once again, I've titled it Divorcing After Age 50: the seven financial steps we need to take first. So, you know, there's a type of retirement risk that very few financial advisors or definitely talk show hosts talk about. So that's why I want to do this for you. And that is this. It is a huge retirement risk. And we need to talk about it more because it again, it's very, very prevalent. It's not the stock market crash. It's not rising inflation. It's not running out of money money. It's all the, you know, it's not all the different things I've told you about day after day on this program, but it's divorce. More specifically, divorce later in life. And hence why we call it The great divorce. That usually again refers to a couple's divorcing after age 50. And financially, divorcing at age, I don't care, 50, 55, 60, 65, completely different than those that are divorcing at much younger ages, 30s, even 40s. Because at age 30, you have another three decades to rebuild. At age 60, not quite the case. Matter of fact, retirement may be just right around the corner. Maybe say five years away. Or you may already be retired. Suddenly, one household becomes two households. One retirement portfolio becomes two retirement portfolios. One house may have to support two future housing needs. Healthcare changes, Social Security changes, taxes, boy, do they ever change? And of course, beneficiaries change. And perhaps the biggest mistake that somebody can make is beginning the entire legal process of divorce before they truly understand their financial position. So today I'm going to walk you through seven financial steps to consider before filing for a gray divorce. And whether you're contemplating divorce, already going through one, or simply know somebody who is, this is one show where getting the financial decisions right can affect the rest of your life. Let's get started. Number one, know exactly what you own and what you owe. So my two O words, own and owe. Before anyone starts arguing over who gets what, first thing you have to determine is what is there to divide? You need to start gathering items. And I've made a list for you. Know what the value of your house is, what bank accounts you have in their values, what brokerage accounts you have in the values, 401ks, IRAs, pensions, business interest, real estate, vehicles, life insurance cash values. And you may be going, well, wait a minute here. What's so important about this? Because what I'm trying to do is prepare you for the meeting with a divorce attorney. These are things he or she is going to ask you for right out of the gate. What do you have? What do you owe? Because again, in our state as well as many other states, it's pretty much a 50-50 split. It's hard to get out of that. I'm not going to get into child support and those type of things since I'm focusing on the grade divorce. And you said the kids are out of the house. There's no alum or excuse me, no child support that is due or anything like that. But you need to make a list. You need to make your own personal balance sheet of all those assets and whatever else you have of significant value. Same thing on the liabilities. But remember on the liability side, what you got be careful about here, did you undertake a liability that was only in your name? That doesn't mean that your spouse is off the hook, but it creates a little, we'll call it cloudiness in the waters. So make sure that you, when you list your liabilities. You put not only what you owe, who took out the loan, interest rate, payment, et cetera. So obviously you're gonna list things like your mortgage, your home equity line of credit, your credit cards, your autos, business debt, personal loans. Again, identify what's jointly owned, what may be separate property. And here's a key one. What was inherited, right? When it comes to the asset side, this is also where the waters get a little bit murky because many times, and again, I'm not a divorce attorney. Many times those assets that you bring, or I shouldn't say bring, well, I'm gonna I'm gonna give this two phases. Assets that you bring to the marriage, many times those are excluded from the splitting of the assets. And then inheritance that you receive after you've been married, many times are excluded from the inheritance. Again, this is what you need a good attorney for because they will clarify these type of things. Before you negotiate the division of the asset pie, as I like to call it, first thing you want to do is know how big that pie actually is. Right. And again, what I've learned with people over the years, people know I have a little bit of this, I have roughly this, roughly that. They don't know the specifics. Before you go to that divorce attorney, make sure you have it listed specifically. My second out of seven points. Understand what divorce does to retirement. Unfortunately, I've seen many, many people financially, I hate to use this word, but I can't think of anything else, obliterated with a gray divorce. Again, retirement's right around the corner. Things have lined out. Cash flow is going to be good. Everything's great. And then here comes the divorce. And now those plans are completely gone. Let me give you an example. Let's say you're age sixty two, my age. Let's say combined you have two million dollars saved for retirement. You think, Wow, we finally made it. We've got two million dollars. Life's gonna be good. But you've said something incorrect. You say, I've got two million dollars. No, we, you and your spouse, we have two million dollars. And after a divorce, you may have something completely different. Usually of course our two largest assets are our four one Ks and our homes. Employer plans such as four o one Ks and pensions generally require what we call a quadro, a qualified domestic relations order to divide those assets without creating unnecessary tax or penalty issues. Sometimes the quadros come into play on the IRAs. Usually just the divorce decree is satisfactory for the IRAs. So let me break these down in a little bit more detail. So after the divorce is completed, everybody's agreed, and the judge is signed off on it. The judge will issue the quadro again, qualified domestic relations order. Sometimes they do it pretty fast. Sometimes it can take weeks or months, which can make it make it really difficult if one of those spouses were looking to get that money, right? Because the the quadros again apply to your your your retirement savings accounts. You cannot just take your divorce decree and give it to your 401k custodian and say, all right, here it is. She gets half. Yeah, I get to keep half. That's it. They are not going to do anything until you give them the quadro. And again, sometimes these judges they do it real fast. Sometimes it's prolonged. A lot of different factors go into it. But also, I want to caution everybody don't think that the minute you turn in your quadro to your 401k custodian, that the money's you know immediately going to be dispersed. Generally, what these firms will do, because they deal with thousands, if not hundreds of thousands of these a year, they send it to their legal team and then they verify. They go back into the court records because you divorce is public record. They'll go back into the court records, make sure this is legitimate. Sometimes I've seen them even call the court and verify that this is legitimate. Because if you think about it, Now, if you got a million-dollar IRA and you need to get your hands on it, wouldn't it be pretty simple to create a fake quadro? Send it off to Fidelity, Vanguard, whomever it is, if you need to get access to half a million dollars. So that's why these companies take it very seriously and they take their time to make sure that quadro is legitimate. But that quadro, again, is the instructions. To the 401k custodian or 403B because 403B custodian or pension consultant to say, this is what the spouse receives. And again, it doesn't necessarily have to be 50%, just using that as an example. It can be more, it can be less. I've seen 401ks literally in the because of the divorce negotiation where the the spouse gets a hundred percent because the sp the other spouse may have said, you know what, I want to keep the house and there's a bunch of equity. So instead of giving 50% on the 401k, they say take the whole thing. Now, when I come back, I want to touch on the tax ramifications of the quadro. This is really important as we discuss divorcing after age 50, the seven financial steps you need to take first. Let's turn it over to Jack Sabin. He's got news traffic and weather. Hey, Jack. Ha ha ha Back to the John Sanchez show on New Stock 780 KOH again at the market side, We finished down 374 on the Dow, lost 32 on the NASDAQ and the SP declining by 26. All right, just getting into our topic today: divorcing after age 50, the seven financial steps that you need to take. Again, preparation ahead of meeting with the attorney, ahead of really literally, as I tell my clients, if you think you're gonna get a divorce. Do these steps before so you have a pure, clear financial picture as to what's going on. Now again, I'm not saying that if you're miserable in your relationship, in your marriage, that finances mean everything. But I've seen way too many people over my career that think that the divorce is going to be the holy grail, right? Sure, they're away from the person, they don't like being around anymore. But then here comes the financial realities. And they're miserable. I've seen others, of course, where they Hugely succeed. And I hope that happens for each and every one of you, if God forbid you end up getting a divorce. But at least I want you to go into the thought process into the conversation as well informed as you possibly can. Okay, now I left off on the 401ks. So once again, if you have a 401k, the judge is going to issue after the divorce is settled the qualified domestic relations order called the quadro. Again, this will give the 401k or employer sponsor plan custodian the legal division of the assets. Again, it doesn't have to be 50 50 or 50%. It can be any number. I I had a case, or case, had a client, I guess it was about a year ago, long time client when I was way back in my Bakersfield days. Got retired pretty successfully and pretty young from the the oil c fields had a about a $350,000 401k. He called me and he retired my guess 10, 15, probably 15 years ago, I'm guessing I'm thinking now. And he got a quadro for this $350,000 Texaco 401k. And somehow, some way, his ex forgot to turn in the quadro to the courts and to the to the 401k custodian. And so She calls him up out of the boom one day and said, Hey, you know, I forgot to go after that, you know, half of my three hundred and fifty th well, let me rephrase that. Her half was three fifty, it was over seven hundred thousand dollar four one K. How you forget that? I don't know. But long story short, he ended up paying her all of the gains of the account from when she was supposed to take it to the time that she actually refiled and had to go through all the paperwork with the attorneys and judge and all that stuff. And that 350 quadro I think it was worth like, I don't know if I remember 500 and some odd thousand. It it was mind-boggling. So crazy things can happen with quadros is the point I'm getting to. I've seen a lot of different scenarios. They're all not cut and dry. People always think, it's a 50-50. No, it's not. It's whatever your attorneys negotiate and the judge agrees upon. But you know, if you do get a quadro, execute it, which mm majority of people do right away. Now, with the quadro, you can. And let's let's say okay, we've got a husband and wife, and let's say the wife is the one that's gonna get fifty percent of the quadro. Let's just say it was a million dollar four or one K the husband had, the wife's gonna get five hundred thousand. So, wife, listen closely. You can take all that money out and depend upon your age, pay a 10% penalty. Remember, if you're under 59 and a half, you'll pay a 10% penalty, and everybody will pay taxes on it, unless it's a Roth IRA, of course. The prudent thing, of course, is you have the ability with a quadro to do an IRA rollover. to move it into your own IRA. So the wife can open up her own IRA and then transfer her $500,000, this example, to the IRA. No taxes, no penalties, no nothing. So that's obviously usually the most financially prudent. But again, many times divorces create all kinds of financial strains and people are like, nope, I need my hands on the money or at least a portion of it to live. I'm no longer, you know, reliant upon my husband's income or my wife's income, whatever it may be. So just understand the tax rules when it comes to quadros. IRAs, same thing. Now the divorce decree. So these are this is the the I'll call it the the user's manual of the divorce that the that the judge approves, the attorneys create. This is gonna handle things like your IRAs and your brokerage accounts, right? These are all the assets, all the liabilities. Basically, it's the rules of the divorce. So with an IRA, again, same situation as the quadro, we can open a spacile continuation IRA. And those assets of the spouse goes to the other one again without taxes or penalty, as long as it transfers straight over. Their hands don't touch it. All right. One thing I wanna mention also, it's not really pure financial, but I I always tell this to clients that are contemplating divorce. You were making, let me give you an example. Let's say together you guys were making $10,000 a month. That doesn't mean you're making $5,000 each when you're married. What it does mean is this when you get a divorce. Everything doubles but the income. There's now two houses, two utility bills, two insurance policy, two sets of groceries, two car payments, on and on and on. So you have to factor that in. And remember, when we are married, it's not like our spouse cost us double as if we were single. But when you are divorced, it is double, right? She has his ex her expenses, he has his expenses. So That income, of course, usually is going to be cut or it's going to be reduced in many cases. And therefore, this is where producing that balance sheet and really looking at the cash flows I'll get to in a second is extremely important because people are not used to living off of one income. Now I'll get to the tax side here in a second. Let me go to my third point, the social security side of it. Someone may qualify, or s it's not someone, most of you may qualify for a divorced spouse's social security benefit. But the rule is the marriage had to have lasted at least 10 years and other eligibility requirements are satisfied. You may also get a survivor's benefit. Now, big question mark people have is okay, so let's say you were married for 20 years, and let's say the husband's social security benefit is $3,000 a month. Let's say, you know. The wife had the hardest job of all. She stayed home, took care of the kids and in the house, and so on and so forth. She can claim half of your social security benefit. So she can get, in this example, $1,500 a month for life. But it has nothing to do with your social security benefit. Meaning, people always think, okay, my benefit was $3,000. My ex wife's gonna get half of that, $1,500. So that means I only getting $1,500. That's not the case. You get your 3,000, she gets her $1,500. The spouse's claiming of your social security benefit under divorce does not impact your social security benefit. Or your obviously your survivor benefit. So make sure you understand you have the latest copy of the Social Security benefit statement. That so both of you know what's what and who gets what, and so on and so forth. Because again, in the divorce decree, the judge may say, Hey, you know what? you both are making whatever fifteen hundred dollars a month in Social Security. therefore each of you keep your own. Or again, there's again, I go down a million different scenarios like if the spouse hasn't worked and so on and so forth. Let's go to my fourth point. What happens to the house? the stories I could give you on this one. I could do an entire show on this. You know, the house is so different compared to the other assets, right? Not only is it, again, one of your largest, if not the largest asset, probably a lot of equity in there, but it's also an emotional asset. Unlike a stock and bond portfolio that, yeah, you love it. It's done well for you, hopefully. But you didn't have Christmas morning with the kids when they were little. You didn't have anniversary dinners and friends over. You get my point. That house has a lot of sentimental attachment. I call it an emotional anchor. That doesn't mean that selling is the only option. What we're seeing a lot of right now is cohabitation if you have young children. Now that's a crazy one. And I know many of you are going, there is no way in heck that I'm gonna, you know, go through a divorce and then we're gonna live under the same roof. I know, but believe me, it happens a lot because again, couples have the house, there's a lot of equity. they can't sell it for whatever reason and split the the proceeds. they've got young children, they don't want, you know, one week with dad, one week with mom, that for whatever reason. They're like, you what? We can do a a cohabitation for a while. Again, to each his own. But what you're gonna find is one of you most likely are gonna want to keep the house. Now, if you can't reach an agreement, guess what? The judge will be the final decision, of course, and he will say, or she will say, sell the house, split the proceeds. I see that happen a lot. But what you got to think about regarding the house, and you say, let's say you're the one that says, I want the house. Now you have to say, and realistically, can I afford the house? Can I afford on my income alone? Or maybe you're gonna get some alimony, the mortgage payment, the property tax, the insurance, the maintenance, utilities, repairs, maybe a roof, an HVAC system, so on and so forth. So what you have to ask yourself regarding the house is are you keeping the house because it's financially sensible, or are you keeping the house because you're emotionally attached to it? All right, come over with coming back with my point number five. Health insurance can become one of the biggest surprises in a divorce. Let's turn it over to Kristen Snow to wrap us up in the right not shop. Mm-hmm. Surprises of them all. I want to mention one thing. it's gonna use up some of my time here, unfortunately, but it's so very important. I'm gonna go back to the house side of things again, negotiate it, etc. Please be very, very careful in regards to the timing of the sale of the house. Because remember, married together, you can sell that house, make up a up to a half a million dollar profit, no taxes. Unmarried person can make up to $250,000 of capital gains exclusive of taxes. But where things get messy is the two out of five year test rule. Again, to qualify for the $250,000 exclusion, you must have owned the home and lived in it as your main home for at least two out of the last five years. And then we get into the use of time and so on and so forth. We get into also if you move out of the marital home and it takes more than three years to sell the house, or for your ex-spouse to buy you out, you may lose eligibility of the $250,000 capital gain exclusion because you failed the two-year residency test. things can get really, you know, specific in regards to the divorce decree, as I'd mentioned earlier. they can add an exclusion in into the divorce agreement that states that the non-resident spouse, meaning the one that doesn't live there, retains ownership share. And that the resident house can live and the resident spouse can live there for a set period of time. I again I can go through a million different scenarios here, but many times I've found that attorneys do not get into obviously the financial side, like tax advice, obviously, with you going through a divorce. So you need to make sure that you let your accountant know that you are going through a divorce so he or she can counsel you in regards to the real estate side of it. Okay, so now back to the health insurance side of it. So this is really important if you're between age fifty and sixty five. One spouse, let's say, has always been covered through the other's employer. Then divorce happens at I don't know, let's say fifty nine. Now what? Well, what happens there is the post-divorce health coverage, you need to learn about this well ahead of time before filing for the divorce. Because there are options. Cobra, believe it or not, does apply in the event of a divorce. Remember, that's where you can continue your existing coverage for a period of up to 18 months. ACA coverage, Medicare considerations for those nearing age 65. So don't settle the divorce first and then go, I gotta figure out the healthcare side of it. You gotta know ahead of time. Know what the coverage is gonna cost, know what the plan's gonna cover. because retirement planning isn't, you know, how much do I need for groceries? It's what will my entire new life cost me? My housing, my taxes, my insurance, my healthcare, everything. Number six, two assets worth a half a million dollars may not really be worth the same. And boy, this is I've sat in and and I hate to use the word arbitrator because I'm not an arbitrator, but I acted as one, where you're you're trying to settle. These situations with two people that are getting a divorce and they're trying to split up their stock market account. And you talk about getting nitty-gritty because let's say you've got a half a million dollar account. Well, let's say you got some stocks, you've got some ETFs, you got some mutual funds, you some odds, you got a combination of things. Well, some of them grow faster than another. Others may you may have embedded capital gains. There's a million different scenarios there. So remember, if one spouse receives the half a million dollar brokerage account, the other spouse receives the half a million dollar IRA, is it equal? Absolutely not. The IRA may ultimately have income tax consequences when the distributions are taken. The brokerage account may have a bunch of embedded capital gains, but potentially very different tax characteristics. So don't compare the account statements compared to actually what you're going to get and how you're going to spend it. And then lastly, the estate plan. You talk about a reason for many times for an estate plan to be restated, or actually not even restated, pardon me, it's the wrong word. You need your own estate plan, right? You go into the divorce with a joint trust, and now obviously it's not applicable because of the divorce. So if we can help you at specialized trust, by all means we can do that. Sorry, I ran out of time. You get the picture. If you have any questions, please give me a call. God bless. Have a great afternoon. See you tomorrow.