By Jason Sposeep, Senior Partner
After 25 years as a divorce lawyer, I have learned that money does not necessarily cause marital problems. However, it can remove barriers that have kept those problems hidden. Many people believe that suddenly gaining substantial money through an inheritance, a business sale, or even a lottery win makes divorce more likely. The research is considerably more nuanced than that. Studies of lottery winners and inheritors have produced different results depending on the size and source of the wealth, the recipient, and the marriage's circumstances. However, I have seen one thing repeatedly in my practice: sudden wealth can quickly change a marriage's dynamic.
How Sudden Wealth Can Affect a Marriage?
Many couples remain married through difficult periods for reasons that have little to do with romance. They have children. They own a home. They have built businesses. They have developed a lifestyle that would be difficult to maintain after divorce. Oftentimes, they simply cannot imagine how they could afford to start over.
Then an inheritance arrives.
Or a company is sold.
Or one spouse receives a substantial windfall.
Suddenly, the question changes from “How could I possibly leave?” to “If I could afford to leave, would I?”
This can lead to profound change.
How Sudden Wealth Can Shift Financial Power Between Spouses?
Sudden wealth can also change the bargaining power between spouses. A spouse who previously depended upon the other financially may suddenly have substantial independent resources. This can create a newfound sense of autonomy. It can also expose differences that were previously manageable.
One spouse may want to retire and travel. The other may want to continue working and preserve wealth for the children. One may want a second home; the other may want to invest every dollar. One may see the inheritance as an opportunity to completely change the family's lifestyle, while the other sees it as something to protect.
The money hasn't necessarily created the disagreement. It has simply made the disagreement matter.
What Happens to an Inheritance in a Marriage?
Inherited wealth can present another complicated issue: the distinction between “my money” and “our money.” A person may understandably feel that an inheritance belongs to him or her because he or she received it from a parent or other family member, rather than earning it during the marriage. How that money is handled after receipt can become enormously important in a divorce.
Is it kept in a separate account? Is it deposited into a joint account? Is it used to purchase the marital home? Is it invested with marital assets? Do you use it to pay family expenses? Those decisions can have significant consequences. And, importantly, people often make them when nobody is thinking about divorce.
Does Sudden Wealth Increase the Risk of Divorce?
I don't believe sudden wealth routinely causes divorce. More often, it accelerates conversations already underway. Money can provide choices, and those choices can be quite revealing. When the economic barriers to leaving disappear, a spouse may discover that the life he or she has been living is no longer the one he or she wants. That doesn't mean the marriage was doomed. It doesn't mean the money was responsible. It doesn’t mean every inheritance or lottery win threatens a marriage. Sometimes, the opposite happens. Financial security may give a couple the freedom to reduce stress, spend more time together, pursue shared experiences, or finally enjoy the life they worked so hard to build.
The bottom line is that when substantial wealth suddenly enters into a marriage, it is worth recognizing that the financial landscape has changed. As a result, the marital landscape may change with it.
If substantial wealth, an inheritance, or other complex assets are reshaping your marriage’s finances, contact our family law team to learn how they may be treated in an Illinois divorce and what steps could help protect your interests.