Can Planning for Divorce Actually Save Your Marriage?

In this episode of WSJ's What's News Sunday, host Imani Moise discusses the financial stakes of marriage and divorce with Kristen Shearan, director of the Institute for Divorce Financial Analysts. Shearan explains how prenuptial and postnuptial agreements can safeguard assets, reduce conflict, and align couples on financial goals—potentially fortifying relationships amid high divorce rates.

Financial Devastation from Divorce and Why Plan Ahead

Divorce ranks among life's most financially destructive events, often hitting at a time when recovery is hardest. Statistics cited show 40% of first marriages and 60% of second marriages end in divorce. Women face disproportionate harm, especially if they pause careers for childcare, missing wage growth and retirement contributions like 401(k)s. Shearan calls it negligent not to plan, comparing marriage to a major business deal without safeguards. A 2023 Harris poll notes 42% of U.S. adults back prenups, though only 15% sign one—up from 3% in 2010. Pre-marriage planning protects both partners' futures by fostering shared financial understanding, which Shearan says can strengthen bonds rather than erode romance.