The Jon Sanchez Show
09/09-How to financially recovery from a divorce
This iHeartRadio station is brought to you by Vitamin Water. >> We're going to go over this Forbes article because it is absolutely chocked with data that I don't know if it kind of shocked you Jason, but it did me as far as different demographics and lengths of marriages and I mean so many different things. You may be wondering, well, why on a financial show are we talking about this? Well, we all know, of course, the financial devastation that can occur for usually both parties. Sometimes it's more beneficial to another when it comes to a divorce. And so we're going to lay out the groundwork tonight as far as all the stats and so on and so forth. And then on Wednesday we're going to get into again how you recover from this because, you know, this is something Jason and I deal with all the time, you know, the death of clients and divorces. And it is tough and it is financially devastating and it is emotionally devastating. But I think, you know, this is one of those topics, Jason, that the more that we're educated about it, if this is something that our listeners are contemplating, at least we can kind of lay the groundwork and say, all right, here's the things that you can look, you know, I'm going to say look forward to not in a good sense, but look forward to as far as a knowledge sense and then understand, you know, what the ramifications are and so on and so forth. Do you agree? Yeah, I mean, the interesting part is I'm sitting here racking my brain. I've been here, it'll be five years December, gone to my head, I think we've had, including one we're currently working on, for divorces, like it hasn't been a lot for sure. I guess we have, you know, happily married listeners, but the finance is successful, which they're going to find that money is one of the reasons that people get divorced, one of the top reasons matter of fact. For sure, yeah, but it, I think it's a good topic, probably for some of those reasons that, you know, I mean, even though the statistics being as high as they are, it sort of, I think, affects different people in different ways, right? I mean, again, been lucky enough to not be a product specialist. And also, not many friends have gone through really, you know, no kidding, find that interest in your situation. I know one, one of my friends, but aside from that, like there hasn't been a ton of them, and I'm again kind of spoiled both my wife and my parents are still married, so, but it is, it's, it's, you know, and going through these stats, and obviously the divorces that we have helped folks with here, you know, the, the, the clear part of summer contentious, some aren't, but I think that is important to know for, you know, does it make sense to try to work on things, right? Some people, I find maybe didn't spend as much time maybe working on something as they could have, and just because of all of the various financial, whoa, that both sides go through, I mean, even just, you know, splitting the CD collection alone is heavy tough, right? But it is, it's, there's a lot of interesting stats that you dug up here, for sure. Yeah, you betcha. All right, so we'll get to that momentarily. In the meantime, let's get to a stat that we like to report to, and it didn't like the ones last week that we had to give you so many days of last week, but boy, this one was a good one. We had a nice rally today. Call it what you will, call it a market recovery, call it an unwinding of defensive positions, whatever it may be, it doesn't matter. There was a lot of green shown up on the screen today, Mr. Scott. Yeah, no, there was a, it, you know, going to sleep last night, Nikkei was down 3% in Japan. Yen was sort of strengthening, and then that reversal took place late in the session, and Japan was up 2% as the Yen moved back in the other direction, we're sort of right around the flat line now. I think that part is a positive, especially with the market, the way that it ended on Friday. I was concerned that we'd get some follow through today, just because there was not a whole heck a lot of economic statistics or numbers coming through that we're going to derail things early on. We've got CPIPI later this week, but the, you know, not in, a lot in terms of earnings, fortunately, we have Oracle out tonight after the close, up about 9%, so that's a good thing. But you know, it was some of the areas that got beaten up, technology, industrials, financials, bounced back a bit. So I think it was a healthy day, but it didn't feel like a high conviction, high vault day by any stress. It was just, to your point, probably a little bit more of a relief move, and we'd need a heck of a lot more to, to, yeah, to fix some of the damage that we had last week, but healthy, nice to, nice to see it versus the other way. And we got close to, like I'd mentioned, 200 day moving average support on the S&P and NASDAQ. So those are areas that I'm keeping a close eye on, but I'd like to see some more volume conviction on big days like this, but it felt like maybe nothing negative was, was happening. People are excited if football's back and more just a little positive. This is the Tom Brady or back. I know. Wow. Yeah. Did you watch him? I did. I mean, it's like people were sort of hating. I did call it perfectly mediocre. I mean, as a Patriots follower for 20 plus years, right? I think guys, you know, probably his core strength isn't talking, but I mean, I want guys like him like Romo, even if you don't like Romo, I mean, I hate the Cowboys, but I thought Romo does a good job. I want you to tell me something that I wouldn't notice as a normal football fan. Like, yes, I know they're, you know, playing a nickel or blah, blah, blah, but I find it fun when they say, Hey, you know, this is a, this is what he's trying to do. He's trying to draw the defender in this way. But like, that's the kind of stuff that coming. I think he'll get better. And that's why they're hired. Yeah, exactly. Look at Nick Saban on college game day, you know, he's a lot of cuss words to, you know, to a group that, yeah, I was pretty good experience. Some of them are former players and coaches and stuff, but I mean, there's only one Nick Saban in the entire world. And sure. Yeah. And there's only one Tom Brady in the entire world. So it's nice to have football back though. It is. Yeah. Boy, is it ever good on my wife's eyes, but, but in my eyes, it's not enough time to watch it. That's the problem. All right. So, so overall, like I said, a bit of a nice relief rally. Let's hit some of the big movers that did occur today to get the week kicked off. Google went a little bit against the, the upside grained today. They started their government antitrust trial. That's going to be interesting. Stock finished down about $2.39, 1.6% loss to $1.4954. Not a lot of excitement, Jason, not a lot of fireworks in Apple. You know, stock was up just nine cents to 220, 91. They unveiled, you know, new iPhones, other products today. And it's what they call their glow time event. Stock was down about 1.8% earlier before settling, you know, again, just slightly higher. Did you take a look at the products? Yeah, I mean, basically, it was like a glorified Google lens, which I've been using for like three years, right? You know, Apple's always going to be late to this and spend more time working on the actual, I would say, halo around it or the immersion of whatever thing it is. But I mean, watch releases were fine. Great iPads are faster, thinner, blah, blah, blah. There was nothing very, you know, I would say exciting overall from the least. But yeah, this didn't feel like a oh my gosh, I need to go get a new iPhone because of this, right? iPhone 16 now. Right, exactly. I'll say I'll keep my 13 for a while. Yeah, exactly. My work is just fine. I don't need that. What was it? It's like an eighth of an inch more screen space versus you and I currently. Yeah, I don't think so for, you know, $1,200. But I am an Apple junkie. No doubt about it. But there's times you have to upgrade. And there's times I think you can wait a little bit for sure that I feel that's why I was like, want to get your opinion and say, I missed something on this thing real or shatter than you had to run to the apples. Not yet. No, not yet. Exactly. Don't don't count them out. Don't count them out. All right. Let's see. Let's let's throw in a little bit of some of the big cap tech names that had pretty decent action. This includes a little bit of after hours action. Also, when I give you these price quotes, meta rebounding nicely at a $5.23 rise up 1.05% to $5.0550. And of course, everyone is watching so closely after the tough week that it had last week. And that is NVIDIA $4.08 and gain 3.97%, 106.90. Do want to mention, as I mentioned, on the stock updates this morning, and I think we mentioned it on the show on Friday, Palantir and Dell Technologies are going to be added to the S&P 500. What is that before they open on September the 23rd, they're going to replace Etsy and I think American Airlines it is. And so, again, all those index funds that truck the S&P 500 have to get out there and start buying it. And both of those stocks reacted nicely. Palantir was up 13.95%, $4.23 rise to $34.56, Dell at $4.40, 4.31% to $106.40. A little pop on U.S. Steel, symbol X, 7.1% gain up $2.22, the $33.49. City came out and said, you know, if this thing doesn't get squashed by the government, it should do pretty well. It's kind of cheap. And then Boeing was, which is a Dow component, another big mover today, $5.78 increase up 3.67% to $1.63.40. Over the weekend, the union voted, off record, they got to do the official vote on Thursday to approve the new machinist union contract. So it didn't look like it's going to cost Boeing a significant amount of money. So that was a big relief and looks like part of the negotiations was they're going to build one of their, the next airplane in Seattle to, you know, keep it close to home. So nice move on the Dow component there. All right, you're up to date. We'll hit the commodities when we come back and then get ready to get into our topic tonight, how to financially recover from a divorce. Let's turn it over to Kristin Snow. She's in the right now, traffic center. Hey, Kristin. Welcome back to the John Sanchez Show, one of these talks, 780 KOH with Jason Gunnar, Sanchez, wealth management. All right, here's how we finished up 484 gain on the Dow, 1.2% close to 40,829. Now as that gained 194 points, 1.16% with a close of 16, 884 and the S&P rose 63 points or 1.16% to 5,471. About a 1.5% increase on oil prices, 68, 66 a barrel gave up a, excuse me, gained $8.20 on gold 2005, 32, 70 an ounce. And boy, the bond market was quiet down one basis point to a close yield of 3.7%. Jason, before we get to our topic, unless there's anything else you want to add on the market, I just wanted to bring this to everybody's attention just about two minutes ago. Market Watch reporting that David Solomon, Goldman Sachs Chief Executive Officer, of course, was at a news conference or a new industry event, I should say. And he said that he expects the bank's trading revenue to fall 10% in the third quarter from a year ago. That's so to a challenging macroeconomic environment, especially during August, he said. Yeah, this was an industry conference held by Barclays. The stock, which remembers a Dow component down $3.57 right now, about a 0.73% loss to $485 a share. Yeah, I mean, I think that may have come out during the at the end of the day, market-wise. So I don't know if Goldman already- I don't know, because the stock was up $8.96 now it's falling. Yeah, I could be watching the same two minutes ago. Yeah, that was it definitely was longer than that. I saw it earlier today, but you may be right, it could have been post-close. But I mean, you know, Goldman to right there, probably a little bit more of a trading shop. Clearly, if August hurt them, you wonder if it's because they were leading the wrong direction given that the markets have come in a bit, but you never know. You get more volatility, and these guys tend to make money, so we shall see. And what we tend to see too is when one reports a warning like this, others tend to follow, so we will see if that holds true this time. Yeah, so we'll see what kind of impact it has tomorrow, of course. All right, let's get to our topic tonight. Again, tough topic to talk about one that's however very important that we want to share with you. So we want to thank the folks over at Forbes for putting together just probably one of the most incredible reports on divorces. And again, Wednesday, we're going to give you stats tonight, which I think is very important kind of lay the groundwork. And then on Wednesday, Jason and I will get into how you really financially recover from a divorce. So we're going to go through these. We'll start chat about them a little bit and progress on because, like I said, it's an absolutely incredible article. So I want to thank them for producing such a great piece here. So, you know, we've all heard, of course, that half of all marriages in the divorce. But, and I've said that step. I don't know about you, Jason, but I've always said that step. The last one I saw was about 53%. But what Forbes uncovered is not quite the case. It's not quite that bad. Because you have to, as we'll discuss here, you have to look at different age groups. And also, you have to look at how many times someone has been married as far as the success. So I thought that was one of the first things that kind of caught me off guard. So the first segment is titled the key divorce statistics in 2024. So in 2022, there was about 673,989 divorces and annulments occurring across 45 U.S. states, according to the stat. Now, during that same year, 2,065,905 marriages occurred, making the U.S. marriage rate about 6.2 per 1,000 people. Far more people get married over the course of each year than the ones that get divorced. Now, these divorce stats show that what happens to marriage that end and when and how couples decide to end them. Okay. Now, let's start with our first stat. How many marriages end in divorce? So again, we've all used the stat, half of all marriages end in divorce. Well, again, a bit of an exaggeration. According to Forbes, when it comes to the first marriage, only 43% are dissolved. I shouldn't say only, but, you know, 43, it's still very high number, my opinion. So 43% of marriages are dissolved first time. But when we get into our second and third marriages, they actually fail at a far higher rate though, with 60% of second marriages failing and 73% of third marriages ending in divorce. Did that surprise you? You're laughing at that. I think 73% up. 73%. Here's a tip. Don't get married the third time. The right, right. It's just amazing. Yeah, your odds are not against your odds are against I would not do anything if the odds were 73% against it. I mean, you couldn't probably tell me a thing to do like nothing. Here it is. So yeah, 43% of first time marriages failed, second marriage is 60% fail, 73% of third marriages. All right, we'll pause right there. Let's turn over to Greg Neff. It's very busy at this afternoon with the fire. Greg, take it over. We're going back to the John Sanchez Show on News Talk 780KOH. Once again, a 484 gain to start the week on the Dow 1.2%. And as I gained 194, 1.16%, SMP up 63 points are 1.16% also. Joined of course by Jason Gunnar Sanchez, both managed on our topic right now. We're just getting into how to financially recover from a divorce. Now, we're going to do a two-part series. Tonight, we're going to lay out all the stats. Again, thanks to Forbes for this incredible news study that they released. And then on Wednesday, we'll get into more of the financial recovery side of things. But you have to understand what's going on out there. All right, our next area is when do couples divorce? Okay. Now, when marriage is in, of course, usually some time has passed from the wedding. In fact, the average length of a marriage prior to divorce is eight years. So that one surprised me, Jason. I thought it was actually a little bit less than that. I was going to pick around three or four. So that one coming off guard a little bit. Yeah, happy to see, you know? Yep, you got it. We all know divorces are not cheap. Divorces take time. If they're contested, usually it takes about a year to finalize those, although some divorces, of course, can be completed, especially in a short period of time, like three months. But it comes with a big cost. Couples spend an average of $7,000 to dissolve their union. That's just the average. Now, what happens after divorce? Well, fewer, fewer people are remaring after divorce than they did in the past. In 2008, the last time they did the study, there were 48.9 remarriages per 1000 previously married males and 25.2 remarriages per 1000 previously married females. And you're going to hear this theme a lot as we go through these stats, men tend to get married much faster than the women, especially the older they get, the more rapid they get remarried. Now, those numbers fell to 32 remarriages per 1000 males and a 17.2 remarriages per females. Okay, third marriages as we discussed before we went to break. Third marriages, the odds aren't real good. People accept the fact that half of all marriages in divorce almost, but as mentioned previously, this applies to the first marriage. Those who had multiple times face a far higher rate of divorce. In fact, 67% as I said, of second marriages in, 73% of third marriages are dissolved. Most marriages, about 60% are first marriages for both partners, but as many as 20% of the unions involved one person who has been married before, while another 20% are repeat marriages for both parties. In fact, a total of 6% of divorce couples get remarried to each other. I've had that happen with some clients before you and I came together, Jason. It's an interesting one, trust me. So yes, 6% on average get remarried to each other. When this occurs, the odds of future success are actually very high. A full 72% of reunited, reunited couples remain married after reuniting. That makes sense, right? Yeah, it does to me too. You know that person. Getting back together, you probably already know those moron traits about who you're on, right? Exactly. That's right. Now, here's an interesting one, divorces are more likely, divorces, I should say, are more likely to die earlier than married people. Yep, listen to this, divorces can have surprising and long lasting consequences. One of those consequences is an increased risk of early death. Sadly, the mortality rate is 1363 per 100,000 for divorces compared to the death rate of 779 per 100,000 for married couples. Divorce men bear the brunt of this increased risk with a mortality rate of 1,772 people per 100,000 compared to divorce women with a mortality rate of 1,095 per 100,000. I'm sure many of you have read and heard about the great divorce. This is again, when we talk about divorce in age 50 or older, when this late divorce occurs, women tend to pay a much heavier financial price. Women experience a 45% decline in their living standards after a great divorce with living standards defined by comparing income to their needs. By contrast, men experience, gray men, just a 21% decline to their standard of living. So women 45% men 21%. Women are more likely to pay a financial price when a marriage ends because they're more likely to compromise or limit their careers due to home-making responsibilities or to support their partner's ambitions. Because of the gender gap, women also make less than men on average, even in comparable roles. Now, what about home ownership? This is, of course, where many divorces get really nasty from a financial standpoint. About 53.4% of people divorced in 2022 on their home, and just 46.6% were renters. Couples who live together are more likely to get divorced. This is another one that shocked me. You think it'd be just the opposite. Listen to this. Living together prior to marriage is one predictor of the likelihood of divorce. Among those who lived together before engagement, 34% of marriages ended in divorce. 34%. By contrast, just 22% of couples who waited until after marriage or engagement to cohabitate ended up dissolving their union. So stop there real quick. Sure. How can 34% of marriages end in divorce for people who live together and then 22% for people who didn't yet, the numbers like 40 something percent of people getting divorced? Neither of those are high enough to make that the case, right? Well, because you either lived or you didn't live together before you were married, right? I'm just wondering. It's sort of an interesting the way they frame it. They said 34% of marriages ended in divorce of people who lived together before engagement. By contrast, just 22% of couples who waited until after marriage ended in divorce yet, the average is 43. I would have expected one of those to have been much higher, but maybe it's just skewed by more recent numbers. I don't know, just sort of interesting data point there. We can reach out to Forbes. Yeah, exactly. I want to call him right now. I like his flat tax, but this is better for me to serve. Now, many factors to Jason's point could explain this, including the fact that couples with stronger religious beliefs may be both less likely to live together before marriage and less likely to divorce. And I think that's really, that's where I was going to after we're going to laughing where I was going to come to because I'm not going to cover this tonight because it's we don't have enough time, but you get into a lot of religions, of course, that forbid divorce or, you know, it's almost an act of Congress to get a divorce there. And so, I think that may skew some of the data a little bit too. Now, this one, man, still shaking my head on this one. Having friends who are divorced increases your risk of divorce, according to Forbes, the marital stability with a couple social network also plays a role in whether they're union last. Couples who have friends who divorce have a 75% increase in the risk of their marriage ending. Even couples with two degrees of separation from divorce still have a 33% greater risk. Because of this link, some sociologists believe divorce is a social contagion. I would intend to agree to with that one. I really would. They do it. They're right. You're like, yeah, because you see someone else do it. You know, you take it. Well, you can take a man or a woman. And if they're social circle, there's a lot of divorces going on. What do they tend to, you know, women talk to the women, the men talk to the men. And if one of those men or women say, oh, my God, divorce was the greatest thing in the world. Look, I'm able to do I got freedom. I got this about that. Then if you're on the fence of thinking of divorce, you're going to let that little bug sit in your head and go, hey, you know, if my buddy Fred, you know, is happy and divorced, maybe I would be too. So I could see that one coming true. All right. What are the most common reasons for divorce? If you said financial is number one, I incorrect. I thought the same thing till I went through this data. We'll tell you what is the number one reason as well as the other reasons when we return. Let's turn it over to Kristin Snow to wrap us up in the right now, Traffic Center, Kristin. Welcome back to the John Sanchez Show. I'm just talking 780KOH with Jason Conner. We're talking about that. How do you financially recover from a divorce? But first, we want to give you all the stats behind the reasons for divorce. And then on Wednesday, again, we'll do part two, which is more the financial side of things. So we left off the most common reasons for divorce, right? Most of us think it's financial. It actually is not. So listen to the stats created or culminated by Forbes. Here are the most common reasons cited for divorcing couples. 75% of individuals and couples cited lack of commitment as the reason for their divorce. That was the most common cause of marriage ending exceeding even fidelity. And fidelity is another leading cause of divorce. 60% of couples citing the partner's unfaithfulness as the reason that the union ended. Domestic abuse counts for 24%. Divorce couples also state that on top of the reasons I just mentioned that here are the other reasons for divorce. 58% of couples report arguing and excess conflict. 45% of divorcing couples indicate they married too young. And one that Jason I deal with, 38% report financial problems as the divorce caused. So you see Jason back to your point, you said the beginning of the show, you know, in your five years almost being with us, you've only, you can remember the problem. Yeah, it's, you know, again, financial problems. It really is. It really is. Want to save your marriage? Come to us. Step you in. That is true. I, in, you know, looking at this topic, I was pleasantly surprised just as I was racking through my numbers. Like we don't have a lot of them, which is a lot more earlier in my career, maybe because I had younger client demographic at that point. Yeah, I don't know. 60% 66, excuse me, percent of men and 74% of women think their partners should have worked harder to save the marriage. Over 70% of couples report not understanding the realities or stages of marriage. And here's one that I think most of us knew, but not too proud of, which state has the highest divorce rates, divorce rates, our years truly, Nevada has the highest divorce rates of any US state. There are 4.5 divorces for every 1000 marriages in Nevada. One reason why more divorces may occur in Nevada is the state's reputation of having lax rules regarding both getting married and ending marriages. Louisiana has the lowest divorce rate of people at just seven tenths of a percent. Let's see here, person's job. This was an interesting one. Can affect the correlation to jobs? Yes, it is. Yeah, exactly right. A person's job can have the effect of the likelihood of their marriage ending. Here's which professions have the highest and lowest rates of marriage dissolution. Gaming managers and bartenders have the highest divorce divorce rate. There are several professions when the divorce rate exceeds 50%. These include gaming managers who have a divorce rate of 52.9%. Bartenders, a divorce rate of 52.7. And of course, long hours outside of normal business hours constrain the relationship who has the lowest divorce rate. The divorce rate is far lower for certain professions, often less than 50% actuaries. For example, I have the lowest rate of divorce. They're doing the math, they understand. Exactly. Keep my mouth shut, sleep on the couch. Architects and engineering industries have the lowest divorce rate as far as that industry is a concern. Office and admin industries have the highest divorce rate at about 40.6%. Just ask the CEO of, what is it, Norfolk Southern? Yeah, I leave you just got removed from his position. Yeah, quick too. Yeah, potential infidelity. Money is a leading cause of marital conflicts, so unsurprisingly, couples with the lower incomes face a higher likelihood of divorce, but just how high did the divorce stats show? The divorce rate steadily decreases from 40 to 30% as income increases. This is, I wish I had more time. This one is really phenomenal. Once a couple has a household income of around 200,000, divorce rates remain steady at 30%. The rate of divorce does not decline again until household income reaches 600,000, at which it drops closer to 25%. However, once one's income exceeds 600,000, the divorce rate again begins to climb back to 30%. This suggests the increase in income can reduce the risk of divorce, but once the income climbs too high, different set of complications can threaten the stability of the marriage. Boy, oh boy. Good data. Isn't that the truth? Yep, exactly. More money you make, more higher chance of divorce. Go figure that one. That's kind of common sense on that. Honey, we need to stop right around here, or we're going to have a problem. Exactly, exactly. All right. We'll continue our discussion, as I said, on Windsor, we get into the financial recovery side of things. God bless, have a safe evening. We'll see you tomorrow on the John Sanchez Show. See you, Jay. This program was sponsored by Sanchez Wealth Management. The material in this program was intended as general information only and should not be taken as specific investment tax or legal advice. None of the information on this broadcast was intended to be a solicitation for the purchase or sale of any security. Further information is available by contacting john@sancheswealthmanagement.com or 775 800 1 801. John Sanchez offers securities and advisory services through independent financial group LLC, a registered broker, dealer, and investment advisor. Remember, FINRA SIPC securities offered only in states, John Sanchez is registered in Sanchez Wealth Management LLC and independent financial group LLC are unaffiliated entities. This iHeart radio station is brought to you by vitamin water.