Among the many records laid down this year, Madonna set one by handing out an estimated $76 million divorce payout to Guy Ritchie. Lest you cry oh Hollywood, let us point out that firstwivesworld.com has calculated the median length of marriage for 40 celebrities who split this year as more than 9 years, as compared to the national average of marriages ending in divorce being 7.8 years. And Madonna?s payout only reflects a broader trend in society where wives are increasingly outearning their husbands, in 33% of all families in 2005 as compared to 28.2% a decade earlier.
She can afford to do it ?amicably?. For less well off folks, even if falling house prices, job losses and the credit crunch don?t dictate how long a couple stays together, they may lead some to consider less costly ways to split up. An old joke goes: ?Why is a divorce so expensive? Because it?s worth it. Now it better really be worth it.? So what?s the most cost-effective divorce proceeding? Austrian economist Martin Halla has shown that the husband ends up paying the smallest alimony when no lawyers are involved, the alimony payment rises when the husband hires a lawyer, and rises further when the wife hires a lawyer or the couple hires a joint lawyer. But he really has to fork it out when both sides hire their own lawyers. So, if you needed any further proof, an amicable divorce is better all around. Except, of course, when it seems a complete oxymoron.
Or when you have the financial wherewithal to outperform your spouse in a bad economy. There are reports coming in from China about wealthy spouses striking sharp deals while asset values are low. In general, the longer you can afford to carry a depreciating house, while your spouse gets more and more fretful, the better your odds of getting a bargain.