In a recent interview with Shannon Sharpe on Club Shay Shay, entrepreneur and Barstool Sports founder Dave Portnoy made a surprising admission: his ex-wife Renee still has “full access” to his bank account.
Portnoy, who is reportedly worth $150 million, said, “I trust her implicitly. If she wanted to take it, she could… to be honest, she was there when we were living at the in-laws house, she was there when we couldn’t afford a hamburger, she was there through the grind. We kind of separated when we started making it, so she doesn’t get to enjoy any of that? To me, that’s not right.”
Though the couple has been separated for years, Portnoy said in a previous interview with ESPN’s Sage Steele that their divorce proceedings stalled when a judge insisted their financial agreement was unfair to Renee. But she didn’t want half, he explained, so they agreed to a private arrangement outside of court. While Portnoy’s story may sound unconventional, it highlights just how messy and expensive divorce can be.
Don’t miss
- I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
- Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
- Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10
Divorce can be a costly and drawn-out process
Unless your breakup is as amicable as the Portnoys’, divorce is likely to be both time-consuming and expensive.
A typical case can take anywhere from a few months to a few years, depending on where the couple lives and how intense the conflict is, according to FindLaw, a Thomson Reuters company. The average divorce involves $11,300 in attorney’s fees alone and the total costs can exceed $20,000 if it goes to trial, according to Martindale-Nolo Research.
And those figures only reflect the legal process — not the long-term financial aftermath.
Splitting assets can disrupt your finances
Couples who go through a divorce often underestimate the impact on their finances and post-divorce lives, according experts interviewed by The Wall Street Journal.
Dividing up shared assets is typically the most contentious and complicated part of any divorce. Disagreements over real estate, retirement accounts, or illiquid investments can delay proceedings and cause lasting damage to both parties’ financial health.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
But the damage isn’t limited to splitting assets. A study by the Federal Reserve Bank of St.Louis found that on average women lose 9% of their income after a divorce while men lose an average of 17%. Though the reasons vary, factors like new living arrangements, tax filing status changes and healthcare coverage often contribute to a loss of income after a divorce.
For couples over 50, the impact is even more dramatic: A study in The Journals of Gerontology found that women experienced a 45% decline in their standard of living after divorce, while men saw a 21% drop.
Why it pays to plan early for divorce
While Portnoy’s situation is unique, his story underscores the importance of open financial communication before and during divorce. If you’re heading toward separation, it’s wise to consult a financial advisor or attorney to help divide assets fairly and minimize long-term fallout.
Even in the best cases, divorce takes a toll. “But with early planning and the right support, it’s possible to protect your finances and move forward with greater security.
What to read next
- JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it’s too late)
- This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs
- Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
- How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
