Case Study: How “Ruth” Found Balance, Stability, and Better Options
Big picture finances, long-term planning, home equity, retirement accounts, checking, savings, investments, debts, cars, school loans…..oh my! Once we’ve established a working budget for our clients, the next step in the financial analysis process is to evaluate what assets are marital and need to be divided.
This hypothetical example of “Ruth” shows how different settlement scenarios can dramatically impact long-term stability, and how creative financial solutions can open doors women often don’t realize they have. We explore her husband “Fred’s” offer for her to keep the marital home in exchange for his retirement along with some other scenarios to help Ruth evaluate her options.
Everyone’s financial picture is going to be different. As you read through the “Ruth experience”, don’t get caught up on the details. Look at the process and see that there are options providing agency over your choices. Your assets may look vastly different, but the overall approach is similar in every case:
What do you have,
What do you need, and
How do you divide it in a way that is equitable and sets you up for financial success.
Scenario 1: Fred’s Initial Offer Looked Generous, Until We Looked Closer
In this scenario, Fred proposed that Ruth keep the family home. On the surface, that felt generous and supportive. But once we unpacked the actual numbers, the imbalance became clear.
Fred’s Initial Offer:
Ruth keeps 100% of the home equity ($175,000)
Ruth keep half of the non-retirement assets
Ruth receives only 5% of retirement savings ($8,500)
Fred receives 95% of retirement savings ($158,000)
Even though the totals looked roughly even (47% / 53%), the types of assets weren’t aligned in a way that would protect Ruth’s long-term financial stability. She would be left house-rich and retirement-poor, which is a precarious position as she moves into her next season of life.
This is exactly why scenario planning matters, because what looks “good enough” isn’t always good for your future.
Scenario 2: Selling the Home for Balance, Liquidity, and Stability
The second scenario we explored was selling the marital home and dividing both the equity and the retirement assets equally.
Sell-Home Scenario:
Home equity is split 50/50\
Retirement accounts are divided evenly (each receiving ~$83,250)
Both parties end with $228,500 in assets (including bank accounts, vehicles, etc.)
This scenario provides Ruth with liquidity, flexibility, and balance, three things that offer stability during a major life transition. For many women, selling the home becomes a doorway to restructuring life with more clarity and less pressure. Ruth could either use the cash for a down-payment on a new home, or could rent for a while until she feels confident enough to make a longer term plan for her future.
Scenario 3: Keeping the Home While Protecting Retirement With a Creative and Balanced Solution
A home is often much more than an asset; it’s stability, memory, and emotional grounding. As such, we also explored a scenario where Ruth keeps the family home and receives an equal share of the retirement assets.
Before adjustments:
Ruth keeps 100% of the home equity ($175,000)
Retirement assets are split 50/50 (each receiving ~$83,250)
Ruth owes Fred an equalization payment of $61,750 to buy out his equity in the home
While balanced on paper, this put Ruth in a difficult spot: having to produce a large lump sum at the very moment her finances and emotions were already stretched thin.
So, we introduced a more supportive option.
The Creative Solution: A Spousal Support Buyout From Fred
In this hypothetical scenario, based on their earning differences, Fred would owe Ruth monthly spousal support for five years. Instead of paying monthly support for half a decade, we explored a spousal support buyout—a one-time lump sum from Fred representing the present value of those future payments.
This lump sum is then applied against the equalization payment Ruth would have owed him.
The impact of this approach:
The spousal support buyout eliminates or significantly reduces Ruth’s equalization payment
Fred benefits by avoiding five years of monthly support payments
Ruth keeps the home without needing new debt or liquidating savings
The overall division stays fair, balanced, and transparent
Both parties walk away with clarity and stability
Ruth’s long-term financial outlook improves while honoring her desire to stay in the home
It’s a beautiful example of the kind of creative, compassionate strategy that centers both emotional well-being and financial wisdom. When we’re willing to think beyond the default options, solutions emerge that genuinely support a woman’s next right step.
Are you ready to explore your own financial options? Schedule a consultation today.
