Reply to Explain to me the financial risk of SAH if partner is a high earner

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Assume the following: 
Two people have been together for 10+ years and have small kids
Parent wanting to SAH has a professional degree, but earnings likely would never exceed 150K
Working parent has a stable job (think equity partner at law firm) earning 2M+ annually

What is the financial risk of SAH? [b] If they divorce the SAHP will get at least some alimony and half their shared assets earned during the marriage, which would be significant.[/B]

I understand the many reasons working is still worthwhile, but it doesn’t seem to me there’s a big financial risk, unless I’m missing something?[/quote]

This is state-dependent.

But from what I hear from a good friend who is a high-value divorce attorney: one of the big risks is that people in marriages have a very hard time predicting how their spouse will behave in divorce. Even if the law is on your side, spouses often go absolutely nuclear in divorce. The net result is it can sometimes take years to get the money that a SAHM spouse is entitled to, if it is ever found at all. People move money offshore, put it into bitcoin and launder it, ask for bonuses in cash, sell property to relatives at deep discounts, etc. Anything to hide assets that can be done, is done. And they gaslight too (“I didn’t get paid for consulting, just an honarium.”).

You can sometimes uncover this if you have a good forensic accountant but you have to have the cash to hire one. You also need cash to pay an attorney.

In short there is a difference between what you are legally entitled to and what you’d ever see in a contentious divorce. [/quote]

This makes sense to me.

But this would be true even if the SAHP continued working. If she’s working she has say 100K income to fall back on but still presumably takes a MAJOR lifestyle hit.[/quote]

Atleast shed have 100k a year to count on, not an entry level job at 50.[/quote]

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