Divorcing in a Down Market – Pros and Cons

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Should You Divorce During a Down Market? Understanding the Pros and Cons
How market volatility, long-term investing, and the Collaborative Divorce process intersect

When the markets drop, your investments, retirement accounts, and even business valuations may look very different than they did just a few months ago. If you’re considering divorce in a time like this—especially after recent economic turbulence and tariffs—it’s natural to feel uncertain. But believe it or not, there may be strategic advantages to divorcing during a down market, particularly if you approach the process thoughtfully.

✅ Pro: A Unique Opportunity for Buy-and-Hold Investors

If you’re a long-term investor who believes the market will eventually recover (as history suggests it usually does), a down market may present a silver lining. Here’s why:

Let’s say part of your marital estate includes mutual funds, ETFs, or stocks that have dipped in value. If you receive those investments as part of your divorce agreement, you’re essentially getting more shares at a lower “price tag.” Over time, if the market rebounds, those shares may significantly increase in value—benefiting you in the long run.

In other words, if you’re a buy-and-hold investor, receiving a larger portion of your share of marital assets in investments during a downturn could position you well for future growth. You’re not just accepting lower-value assets—you’re planting seeds for potential recovery and wealth.

⚠️ Con: Lower Valuations Can Lead to Complications

Of course, not everything is rosy in a down market. If your marital assets include real estate, business interests, or retirement accounts, their reduced value may cause concern. One spouse might feel they’re losing out if an asset is divided when its value is temporarily depressed.

Also, dividing investments or retirement accounts during a low point can create tension, especially if one party is more risk-averse. This is where fear and conflict can escalate—unless you have a process in place to manage it.

🤝 How Collaborative Divorce Can Help

In a traditional court-based divorce, you may find yourself locked in a tug-of-war over who “wins” and who “loses” financially. But in a Collaborative Divorce, you and your spouse commit to resolving issues together, outside of court, with the support of a professional team.  Each of you have your own separate lawyers prohibited from taking your case to court and to give you independent legal advice, and there are usually also neutral specialists to help in finances and family dynamics.

Here’s how it helps in a down market:

  • Customized Financial Scenarios: A neutral financial professional can work with both spouses to explain investment values, simulate recovery scenarios, and suggest creative ways to divide assets based on both of your interests and risk tolerances—even in uncertain times.
  • Avoiding a Fire Sale: Collaborative teams counsel you to maintain the status quo until there is an agreement to do otherwise, which can help you avoid the rush to liquidate investments, allowing you to stay true to your long-term financial strategy.
  • Preserving Relationships: Especially important if you’re co-parenting, Collaborative Divorce helps you reduce stress and focus on your future, not just your fears.

👤 Led by a Trusted Collaborative Professional

Adam B. Cordover is a leader in Collaborative Divorce, having trained lawyers, financial professionals, and mental health experts throughout the U.S., Canada, Israel, and France. He also co-authored Building a Successful Collaborative Family Law Practice, a book published by the American Bar Association. With deep experience in complex financial matters, Adam can help guide you through divorce in a way that protects your goals and honors your long-term financial values.

💬 We Can Help

If you’re facing divorce during a volatile market, you’re not alone—and you have options. We can help you make informed, thoughtful decisions that protect your future. Contact Family Diplomacy: A Collaborative Law Firm by clicking the button below.

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Family Diplomacy: A Collaborative Law Firm has a virtual practice and represents clients in South Florida, Central Florida, and North Florida.  We also have offices in Tampa, St. Petersburg, and Sarasota.

Overcoming Adversity

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Adversity can strike when we least expect it, disrupting both our personal lives and professional careers. How we respond to these challenges determines our ability to recover and thrive. Collaborative Divorce attorney Adam B. Cordover knows this firsthand. After Hurricane Helene devastated his home and office in September 2024, he faced the daunting task of rebuilding from scratch. Through resilience, strategic planning, and a mindset shift, he not only overcame adversity but also grew his practice by 22% year-over-year.

Here are key lessons from Cordover’s journey that can help attorneys—and professionals in any field—navigate life’s unexpected setbacks.
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Imputing Income on Investments for Alimony & Child Support in a Florida Divorce

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When you go through a divorce, how much income you and your spouse can earn may become important for purposes of calculating alimony or child support. If one or both of you have investments and savings—like stocks, rental properties, or savings accounts—these assets may count as income, even if they are not bringing in cash every month. This process is called imputing income on investments.

In a courtroom divorce, each of you would likely hire your own financial expert to argue about how much income should be counted. This often leads to a battle of “dueling experts,” which can be stressful and expensive. But in a Collaborative Divorce, you and your spouse can work with one neutral financial professional to come to a fair decision together.

What Does It Mean to Impute Income?

Imputing income means estimating how much money an investment could make, even if it is not currently earning income. For example:

  • A rental property that is sitting empty could still be rented out, and the potential rental income can be counted.
  • A stock portfolio may not pay dividends every year, but it has a history of earning money and growing in value.
  • A savings account could be invested to earn interest instead of just sitting unused.

By imputing income, you ensure that all financial resources are considered when calculating support payments, helping both spouses and children receive the support they need.

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Practice Management Tips for Working Remotely

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Remote work has become an essential part of modern business, including law practices, allowing attorneys to serve clients efficiently without being tied to a traditional office. Collaborative Divorce attorney Adam B. Cordover has built a successful virtual law firm, and his insights provide valuable lessons for business owners and legal professionals looking to optimize their remote practice.

1. Structure Your Schedule for Success

One of the most important aspects of working remotely is setting clear boundaries for focused work. Cordover emphasizes the need to block out uninterrupted time for strategic thinking and business development.
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Collaborative Divorce: Who is Right for It & What Is It?

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When people think of divorce, they often picture contentious court battles, high stress, and significant financial strain. But what if there was a better way? Adam B. Cordover, a leader in private dispute resolution, believes there is—and it’s called Collaborative Divorce.

What Is Collaborative Divorce?

Collaborative Divorce is an alternative dispute resolution process designed to help separating couples reach an agreement without a public and contentious court battle. As Cordover explains, “Each spouse has their own separate attorneys, and the attorneys are there solely for the purpose of reaching an out-of-court agreement.” This means that no energy, time, or money is spent fighting in court. Instead, the focus is on cooperation and crafting a resolution that meets the needs of both spouses.
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Are Real Estate Syndications Considered Marital Property in a Florida Divorce?

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Real estate syndications have become a popular investment strategy for high-net-worth individuals and savvy investors seeking passive income and portfolio diversification. However, if you are facing a divorce in Florida, you may be wondering: Is my investment in a real estate syndication considered marital property? And if so, how is it valued and divided?

The answer depends on several factors, including when the investment was made, how it was funded, and whether any legal agreements protect it. In this post, we’ll explore how Florida law treats real estate syndications in divorce and what you need to know about valuation and division.

Are Real Estate Syndications Marital Property in Florida?

In Florida, marital property includes assets acquired by either spouse during the marriage, regardless of whose name is on the title or investment documents. Conversely, nonmarital (or separate) property includes assets acquired before the marriage, through inheritance, or via a gift from a third party.

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How Tax Loss Harvesting Can Turn Non-Marital Investments Into Marital Assets

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If you’re an investor going through a divorce, you likely have a keen eye on your finances. You may already be familiar with tax loss harvesting, a strategy that can help reduce your tax bill by selling investments at a loss to offset capital gains. While this technique can be a smart financial move, it can also have unintended consequences in divorce—potentially turning what you thought was your separate, non-marital property into a shared marital asset.

What Is Tax Loss Harvesting?*

Tax loss harvesting is a strategy that can be used to lower your tax liability. For example, if you have investments in a taxable brokerage account that have lost value, you can sell them at a loss to offset capital gains from other investments. This reduces your overall taxable income and can lead to significant tax savings.

There are many rules associated with tax loss harvesting.  For example, you cannot sell a mutual fund at a loss and then immediately repurchase that same mutual fund.  However, one strategy that many investors utilize is to sell one investment at a loss and then purchase a similar, but different, investment.  For example, you might sell VTSAX, the Vanguard U.S. total stock market index fund, at a loss and purchase VFIAX, the Vanguard S&P 500 index fund, which is highly correlated with VTSAX.  The White Coat Investor website has a really good explainer on tax loss harvesting.

Many investors use this approach as part of a long-term financial strategy, reinvesting the proceeds into different securities to maintain their investment portfolio. However, if you are going through a divorce, you must be careful about how and when you execute tax loss harvesting.

*Please note that we are not accountants, financial advisors, or tax lawyers, this information is not intended to provide advice, and this is for educational purposes only.

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Sarasota Family Law Review: “Very Well Managed From Intake Through Resolution”

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We are so appreciative of our clients, and we feel fortunate when they let others know about their experience with us.  Recently, a client left a review on Google for our Sarasota office.  Please note that every situation is different, and we cannot guarantee the same or similar results in your case.  Here is the review:

“Clear and consistent pricing, very well managed from intake through resolution, proactive clear communication; excellent overall.”

Five Stars

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Collaborative Divorce: Control Your Own Destiny

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When you’re facing the difficult decision to divorce, it’s natural to feel overwhelmed. And when you are used to making high stakes decisions, the feeling of powerlessness is just unacceptable. Decisions about your family, finances, and future carry immense weight. The last thing you want is to surrender control of your destiny to a judge in a public courtroom. That’s why many C-Suite executives, doctors, business owners, high-ranking military officers, and other professionals in Florida choose Collaborative Divorce.

What Is Collaborative Divorce?

Collaborative Divorce is a unique and private approach to family law that puts you and your spouse in charge. Instead of battling it out in court, you work together with a team of professionals to craft agreed upon solutions tailored to your family’s needs. Each of you have your own separate lawyers to provide you with independent legal advice.  The Collaborative Lawyers are there solely for the purpose of reaching an out-of-court agreement, and are prohibited, once the Collaborative Process begins, from being used to fight in court.  Additionally, your Collaborative Team may include a financial expert to navigate tricky financial discussions and a Facilitator (who is a licensed mental health professional) to keep discussion focused on the future rather than the disputes that led to the divorce.

Maintain Control Over Critical Decisions

Unlike traditional litigation, Collaborative Divorce fosters cooperation rather than conflict. You, your spouse, and your lawyers share the same goal: to find resolutions that work for everyone in your family. This approach gives you the power to decide how to divide assets, plan for your children’s future, and address any other issues that arise. Instead of a judge dictating your future, you together with your spouse maintain control over these critical decisions.

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Cordover Appears on Great Practice Great Life Podcast

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Earlier this week, I had the pleasure of being featured on Episode 114 of the podcast Great Practice, Great Life, where I shared insights into my journey as an international thought leader in Collaborative Divorce and my efforts to revolutionize out-of-court dispute resolution through my law firm, where we virtually represent clients throughout the State of Florida and also have offices in Tampa, St. Petersburg, and Sarasota. This conversation gave me the chance to reflect on some of the key moments and principles that have shaped both my professional and personal life.

One of the topics we discussed was the profound impact of Hurricane Helene in 2024, when, like many others, I lost my home from the flood surge. In the aftermath of that challenging time, I found an opportunity to reassess my approach to work and life, leaning into gratitude. The hurricane, like so many challenges we face, served as a catalyst for growth and transformation. My story highlights how adversity can push us to innovate and strengthen our resolve.

 

We also dove into the unique world of Collaborative Divorce, an area of practice I’m deeply passionate about. This process brings together attorneys, mental health professionals, and financial experts to help families resolve disputes amicably, privately, and outside the courtroom. It’s a particularly valuable approach for professionals, doctors, executives, members of the LGBTQ+ community, business owners, politicians, celebrities, professional athletes, and others who place a premium on privacy and self-determination. In the podcast, I emphasized the importance of teamwork and how shifting from a competitive to a collaborative mindset can lead to more fulfilling and effective outcomes for everyone involved.

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