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Money For Couples

38. “He owes his ex $70k/year and it’s straining our finances and our relationship”

Money For Couples

Ramit Sethi

Relationships, Society & Culture, Investing, Business

4.63.1K Ratings

🗓️ 12 April 2022

⏱️ 71 minutes

🧾️ Download transcript

Summary

Rebecca and John are both attorneys and make good money. While John makes more, he’s legally obligated to pay around $70k annually in alimony and insurance tied to a past divorce settlement. On top of that, his income can vary widely, making the future difficult to plan for—and he has debt. He’s 61 but sees no way he can retire any time soon. They’re dealing with not only the very real financial problems they face but also the resentment caused by them. That resentment colors every interaction they have with money. When I start digging into where the rest of their income goes, they start to get a little dodgy. We’re going to shine a light on some of their spending habits and find a path that lets them live a Rich Life without the stress. Connect with Ramit Website Instagram Twitter Facebook YouTube Linkedin If you and your partner have a money issue and you want my help, I occasionally select a couple to work with, free of charge. Apply for my help here. Produced by Crate Media.

Transcript

Click on a timestamp to play from that location

0:00.0

The careers themselves are stressful, like the nature of the work we do.

0:06.8

We're both litigators. It's inherently adversarial. He's managing the firm as well as managing a

0:13.3

caseload and he comes home and he's stressed and I feel like where's the financial reward in exchange

0:22.8

for this level of stress that he's under and that pattern just repeats itself every day.

0:28.4

I would really like to be able to sleep it better at night and you don't sleep well at night

0:35.4

now because of what? Financial stress? I feel really, really resentful of the situation.

0:42.7

He chose to marry me even though it meant the complete financial destruction for him, really.

0:48.7

I am resentful and one part of it is that I can be relieved of my obligations if my ex-wife

0:57.2

remarries or enters into some sort of co-habitation relationship.

1:03.2

The likelihood of that happening is very low because of the money that I pay her every month.

1:11.1

In other words, she doesn't want to do it because the cash would stop.

1:15.2

That's right. Wow.

1:19.0

Meet John and Rebecca, both attorneys. John is 61 and Rebecca is 44. This is their

1:25.9

second marriage. To recap what you just heard, John is paying about $70,000 a year in support

1:33.8

between his ex-wife support payments and the life insurance that he's legally obligated

1:39.2

to maintain for her. He's also paying an additional $600 a month so that Rebecca is covered by

1:45.3

life insurance. Though they both earn good salaries, around $200,000 a year, he has a highly

1:53.6

variable income that makes it hard to save, especially when he owes about $70,000 a year

2:00.4

to his ex. Speaking of that, can you imagine having to pay $70,000 a year to an ex forever?

2:10.8

Imagine how it would make you feel about money. Think about commuting to work every day.

2:16.4

Think about every paycheck you made. Think about how you would even feel if you got a raise.

2:22.9

John and Rebecca have been living with this for years.

...

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