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I cover personal finance issues that face Gen X and the Middle Class. I also focus on the financial impact of life transitions such as divorce, job changes, or death of a partner. Each month I will also be sharing a market commentary titled “Here’s To Your Wealth”. My blog... Read more

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7 Financial Tips to Avoid January’s High Divorce Rate

With Valentine’s Day a few weeks away, it might seem coldhearted to be writing about divorce, but there are reportedly more divorce filings in January than in any other month. While repairing the cracks in cupid’s love bubble may not always be possible, couples can take some steps to reduce arguments, at least around money. Here are seven financial tips for people in a committed relationship who are trying to remain in a state of marital bliss: 

  1. Understand each other’s history. We all have a life history and childhood experiences around money which can differ greatly between spouses. For example, if one spouse was frequently given lavish gifts as a child, then spending a lot on gifts may come naturally to him or her. However, this may cause a lot of anxiety for the other spouse who grew up working for minimum wage. Without an understanding of the values you each place around money and spending, disagreements may soon follow. Little differences like this can polarize conversations around money, so try to understand each other’s monetary drivers and experiences.
  1. Hire a referee. If talking with each other doesn’t always go as planned, get a referee—or in this case, a financial advisor. He or she can deliver a written document outlining your goals, monthly cash flow, and saving requirements. This way, each partner can see for themselves why a certain action may or may not be a part of the mutually agreed plan.
  1. Set mutual goals. Having conversations about your family’s financial situation and overall plans for the future is a great step. From there, set mutually agreeable, specific goals and take pride and enjoyment in tracking your progress. If you can see and share results with each other, it can be a more positive experience.
  1. Develop a monthly cash flow worksheet. As a couple, determine how much income you need to live on (the amount you need to spend) and how much you can save after monthly bills are paid. The remainder is your discretionary income, which is the amount you can either spend on luxuries or save for your longer-term goals. Also, prioritize which bills are essential and look for places to reduce unnecessary spending. In addition, learn as much as you can about your mortgage, taxes, and insurance and look for refinance opportunities and other cost saving measures. When both spouses share the same understanding of their family finances and financial vision, it can help build shared values and avoid misunderstandings.
  1. Know where your money is invested. If your assets are titled jointly (it is usually smart for marital assets to be held with joint ownership), you can ask for statements to be mailed to you or to have access to your online account statements. Don’t delegate to your spouse full responsibility for understanding your assets and making investment decisions; instead be interested and involved, at least enough to avoid unwelcomed surprises. I have seen people in a state of shock after learning their spouse was investing in a fancy wine collection or in a local restaurant that subsequently failed.
  1. Have the courage to discuss insurance. Just because you and your spouse are not discussing financial concerns doesn’t mean they aren’t lurking just below the surface; and these concerns can cause relationship stress. I see this most often with the topic of death and disability. Especially when there is an income disparity, the lower-earning spouse is often worried about how they will support themselves should their spouse die or become disabled; yet, because it’s a difficult topic, they avoid bringing it up. To be sure, it can be a discussion full of emotion, but it is a discussion that needs to be had. If you’re the higher-earning spouse, remember it shows a great amount of care and thoughtfulness on your part if you take the initiative to discuss this topic with your spouse.
  1. Consider a “postnup.” A postnuptial agreement is a contract you make with your spouse after the start of your marriage. According to Stuart Skok, a Maryland-based divorce attorney, in a postnuptial, you negotiate what would happen in the event of divorce or death.” As such, it can also serve as part of an estate plan. Another benefit of a “postnup” is that the couple works through financial issues, potentially alleviating problems that could otherwise lead to arguments and eventual divorce. The postnup process may even help to begin repairing rips that have started in the relationship around finances. A postnup is a strategy often suggested by Skok, who counsels that “the grass is not always greener on the single side.”

A lot goes into managing a household budget and investment portfolio, and it can be confusing. Talk with your partner about all of this and get on the same page. That way, you may protect yourself from at least one of the reasons why January is such a popular month for divorce filings.


Learn more about Mark Avallone’s recently released book, Countdown To Financial Freedom


Mark Avallone, MBA, CFP®, CRPS®.

Securities and Investment Advisory Services offered through H.Beck, Inc., Member FINRA/SIPC. 6600 Rockledge Drive, 6th Floor, Bethesda, MD 20817 301.468.0100. Potomac Wealth Advisors, LLC is not affiliated with H.Beck, Inc.
This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding any funds or stocks in particular, nor should it be construed as a recommendation to purchase or sell a security. Past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. Diversification and asset allocation do not guarantee against loss. They are methods used to manage risk.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
*The economic forecasts set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Consult your financial professional before making any investment decision.

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Mark Avallone, MBA, CFP®, CRPS®

About Mark Avallone, MBA, CFP®, CRPS®

I am the Founder and President of Potomac Wealth Advisors, an independent financial advisory firm headquartered in Rockville, MD and also the author of Countdown To Financial Freedom, Your Path to a Meaningful, Active and Vibrant Retirement. In addition, my commentary on the markets and the issues facing investors has appeared on the Fox Business Network and in USA Today, US News and World Report, The Wall Street Journal and other publications. Previously, I was a Senior Vice President in The Private Bank of Bank of America and a VP in the Corporate Banking Division of Mellon Bank. I am a CERTIFIED FINANCIAL PLANNER practitioner, a Chartered Retirement Plans Specialist and hold an MBA degree from Rutgers University. I am a proponent of financial education, and have been an adjunct professor of finance at The University of Maryland University College. For more information please visit my website, You can contact me at 301-279-2221 or at


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