Timing Is More Than a Detail
We often hear about the importance of what’s in the agreement—but when it’s signed, finalized, and effectuated can be just as critical. Timely execution ensures that the terms agreed upon are locked in, enforceable, and aligned with any court schedules or deadlines. A delay can introduce unexpected complications, financial risks, or even an inability to carry out the terms if one party’s circumstances change.
Key Reasons to Execute the Agreement Promptly
- Prevent Changes in Financial Circumstances
Delays can open the door to significant changes—such as a job loss, promotion, stock market fluctuation or large purchase—that may impact one party’s ability to meet agreed-upon terms or alter what’s considered equitable. - Lock in Terms During a Window of Cooperation
Reaching agreement often reflects a fragile but valuable moment of cooperation. Letting too much time pass may risk backtracking or second-guessing, especially if emotions flare or external influences arise. - Meet Legal and Court Deadlines
Many jurisdictions have specific timelines for filing agreements, especially if tied to court dates. Missing a deadline could result in needing to reschedule hearings or having too much time between negotiations or meetings can potentially restart negotiations altogether. - Provide Peace of Mind and Closure
One of the most powerful outcomes of a timely signed agreement is the clarity it brings. With finality in place, both parties can begin planning their next chapter with confidence.
The Impact of Market Volatility on Divorce Settlements
Recent events in the stock market underscore the importance of timing. In early April 2025, global markets experienced significant turmoil following the announcement of sweeping new tariffs. On April 4th alone, the S&P 500 dropped 6%, with similar losses across the Dow Jones and Nasdaq. Such volatility directly impacts the division of investment portfolios and retirement accounts in divorce. If a settlement agreement is delayed during a market downturn, the value of one or both parties’ assets may shift dramatically—potentially resulting in an unfair or unbalanced division that no longer reflects the intent of the original terms. For example, a 50/50 split of an investment account may look equitable one week, and then drastically different the next if stock values tumble or surge. Timely execution helps capture the financial picture as it was agreed upon, not as it changed after the fact.
Practical Tips for Staying on Track
Recent events in the stock market underscore the importance of timing. In early April 2025, global markets experienced significant turmoil following the announcement of sweeping new tariffs. On April 4th alone, the S&P 500 dropped 6%, with similar losses across the Dow Jones and Nasdaq. Such volatility directly impacts the division of investment portfolios and retirement accounts in divorce. If a settlement agreement is delayed during a market downturn, the value of one or both parties’ assets may shift dramatically—potentially resulting in an unfair or unbalanced division that no longer reflects the intent of the original terms. For example, a 50/50 split of an investment account may look equitable one week, and then drastically different the next if stock values tumble or surge. Timely execution helps capture the financial picture as it was agreed upon, not as it changed after the fact.
How Divorce-Focused Financial Professionals Can Help
At Argent Bridge 2 Divorce, we work closely with attorneys and clients to ensure that settlement agreements are not only equitable but also executed with care and urgency. As Certified Divorce Financial Analyst® professionals, we understand how timing impacts taxes, investments, cash flow, and long-term financial health. We’re here to bring clarity to complexity and help you confidently move forward at the right time.
Jamie Blum, CPA®, CDFA®
Director, Divorce Financial Planning and Litigation Support
Argent Bridge 2 Divorce (AB2D) provides divorce financial planning services. AB2D does NOT provide legal advice. All information provided is financial in nature and should NOT be construed or relied upon as legal advice. Individuals seeking legal advice should solicit the counsel of competent legal professionals knowledgeable about the divorce laws in their own geographical areas. Divorce financial planning is a fee-only process that does not involve investment advice, securities, or insurance transactions. Argent Bridge Advisors offers investment advice, securities management, and insurance services through a separate engagement.
