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Divorce can serve as a catalyst for planning for the future, and by taking the appropriate action today, you can help protect your business, key employees, and personal interests, as well as meet future LTC needs.

Going through a divorce can be a difficult experience both emotionally and financially. If you are divorced, you are not alone: approximately 40 to 50 percent of marriages in the United States end in divorce.[1] While transitioning into a new life, certain areas of concern may arise now that you are on your own. For business owners, in particular, important questions about the future of your company’s success need to be asked sooner rather than later, including the following:

  • Who will take care of you, if at some point, you should sustain a debilitating illness or injury that requires extended care?
  • Are your most valuable assets—the key employees whom you trust to take over the daily operations of your business—prepared for the possibility of needing Long-Term Care (LTC) services themselves?

LTC refers to a variety of medical and non-medical services provided to individuals with a chronic illness or disability. Most LTC involves assistance with activities of daily living (ADLs), including but not limited to dressing, personal care, meal preparation, and housekeeping. An individual is generally considered to be in need of LTC if he or she has difficulty performing two or more ADLs due to physical limitations, cognitive impairment, or both.

A LTC event can come about suddenly, as a result of an accident or illness, or gradually, as part of the aging process. Inevitably, LTC planning becomes an essential component of a sound financial plan, especially when facing the challenges of a post-divorce reality. Since, it is estimated that the majority of Americans over 65 will need LTC services at some point in their lives, you may want to consider that your assets and those of your key employees, which have taken a lifetime of hard work to accumulate, could be depleted in a relatively short amount of time with the expense of LTC.[2]

According to a 2013 Genworth report on the rising cost of care, the national median annual rate for a private room in a nursing home is $83,950, a $16,425 increase in just five years.[3] Long-Term Care Insurance (LTCI) can help cover the cost of extended care in a nursing home, an assisted living facility, or for custodial care in the home, while helping to protect savings and other assets from the costs of LTC.

As a business owner, you know the importance of planning for your company’s future, including attracting and retaining key employees. Inadequate planning for the possibility of future LTC issues can have a huge impact on your business, your key employees, and your portfolio. Keep in mind that difficult circumstances, such as a divorce, can serve as a catalyst for planning for the future. By taking the appropriate action today, you can help protect your business, key employees, and personal interests, as well as meet future LTC needs.

Important Disclosures


All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.


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[1] “Marriage and Divorce,” www.apa.org/topics/divorce. 4/29/13.

[2] Medicare & You. National Medicare Handbook, Centers for Medicare and Medicaid Services, revised November 2012.

[3] Genworth 2013 Cost of Care Survey, conducted by CareScout®. March 2013.