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It is no secret that the emotional reality of divorce is painful.

It also has a huge impact on couples regarding the money involved, due to its complex redistribution of assets, obligations, and long-term economic implications. 

Kevin O’Leary, an investor who appears on ABC’s “Shark Tank,” offers some blunt words on divorce, plainly stating exactly what he thinks about it from a financial viewpoint.

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Divorce often requires the division of property acquired during the marriage, including homes, vehicles, retirement accounts, and investments.

Determining equitable distribution can be complicated by varying state laws and the couple’s financial circumstances.

In addition to asset division, ongoing financial responsibilities such as alimony and child support may be mandated. These can significantly impact one or both parties’ budgets, particularly if income disparity exists. 

Related: Dave Ramsey has blunt words for Americans buying a car

There are big legal fees, mediation costs, and additional expenses related to establishing separate households that strain resources. 

Both parties involved may face reduced living standards post-divorce, as the cost of maintaining two separate households tends to exceed that of a shared one.

Divorce can also negatively affect long-term financial planning. Retirement savings may be split, for example, and future contributions could be diminished. Investment strategies may need reconfiguration, and insurance policies often require revision. 

Tax consequences also frequently arise, as filing status changes and some deductions may no longer be available.

In cases involving children, education and health care costs must be considered, often requiring ongoing coordination between both parties.

O’Leary explains his take on divorce that many people may not want to hear.

Kevin O’Leary says getting a divorce is ‘stupid’

In a post on Instagram, O’Leary spells out in no uncertain terms how he feels about the decision to get a divorce.

“Think of the geometric loss of wealth every time you get divorced,” O’Leary said. “You pay the woman that you divorced, or man, and you pay the government a third — often through capital gains liquidation — because you can’t separate all the assets without liquidating them sometimes.”

“So you’ve got government sitting there, you’ve got the other spouse sitting there,” he continued.

“This is the stupidest thing you could ever do.”

More on personal finance:

• Dave Ramsey offers urgent thoughts about Medicare
• Jean Chatzky shares major statement on Social Security
• Tony Robbins has blunt words on IRAs,401(k)s

O’Leary describes his view on the background involved in many divorce cases.

“You’ve spent your whole life to actually create this nest egg,” O’Leary explained. “It could be, you know, you’re 45, or whatever. You’ve got a comfortable life and all of a sudden you don’t like your wife or husband.”

“Think about that for a while,” he said. “Because you are going to wipe out up to two-thirds of your wealth.”

Related: Shark Tank’s Kevin O’Leary warns Americans on 401(k)s

Kevin O’Leary explains a reality of divorce some may not want to hear

O’Leary emphasizes his blunt opinion on one aspect about the decision to get a divorce that many people would seemingly not wish to confront.

“You better really like somebody else a lot,” he said. “And frankly, sometimes it’s not the other person you’re divorcing. It’s you. You’re the problem.”

“If you’re getting married for the third time, you’re a guy or a woman, it’s not them. It’s you,” O’Leary continued. “There’s something wrong with you. And you should probably not get into another economic union.”

O’Leary further explains his perception that ending a marriage can be one of the most financially damaging experiences in a person’s life. 

When you marry, you’re forming a joint economic venture — every dollar, asset, and liability is shared, he says. That partnership carries high stakes, so selecting a compatible financial partner is vital. 

O’Leary advises couples to discuss money habits early, align their long-term financial aspirations, and build safeguards to maintain stability. 

A well-matched union isn’t just about love; it’s also a strategic alliance, he explains. Without shared financial values, the costs of separation can be devastating.

O’Leary suggest that people consider not just the emotional side of commitment, but also the financial blueprint they are crafting together. 

If you are the type of person that repeatedly faces divorce, he has a frank word of advice.

“You should probably just date till you drop dead, because it’s stupid,” he said.

Related: Tony Robbins sends strong message to Americans on 401(k)s, IRAs

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Most American workers generally understand that Social Security monthly paychecks will one day significantly contribute to their future retirement income. 

But because those Social Security benefits are not by themselves enough to provide people with the financial resources they need to live on comfortably, most also recognize that 401(k) plans and IRAs (Individual Retirement Accounts) are additional tools necessary for securing their financial future. 

However, finding the extra money to contribute to these accounts can be a significant challenge.

Kevin O’Leary, a prominent entrepreneur and investor widely known for his appearances on ABC’s “Shark Tank,” shares a method that enables workers to cut expenses and direct more money toward their 401(k) and IRA savings.

He also offers a stark financial warning.

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Participating in an employer-sponsored 401(k) plan is a dependable way to build retirement savings, especially when employers offer matching contributions.

With automatic payroll deductions, this method allows employees to invest in their future effortlessly, making it both practical and efficient.

Related: Jean Chatzky sends strong message to Americans on Social Security

IRAs, on the other hand, provide a wider selection of investment options not typically available through 401(k) plans. However, they require more hands-on management, as individuals must open an account and set up automatic contributions independently.

In addition to a major warning, O’Leary offers valuable advice on how individuals can cut costs and increase their retirement contributions, which for many Americans primarily consist of 401(k) plans.

Kevin O’Leary warns Americans on money for 401(k) plans

Many workers who are committed to contributing as much money as they can toward their 401(k) plans find it difficult to do so because their spending habits leave little left to put away for the future.

In fact, O’Leary emphasizes, many people spend more than they make —
and are working in large part to finance their debts and pay their bills.  

“You are in constant fear of losing your job, or of your assets losing their value. You worry that one big, unexpected bill might put you under for good, and then you avoid that thought,” described O’Leary in his book, “Cold Hard Truth on Men, Women and Money.” 

“You’re avoiding the phone and people to whom you owe money. Maybe you’re retreating from friends and family out of fear or shame,” O’Leary continued. “You’re steeped in magical thinking about money — for example, believing you’re one lottery ticket, inheritance, or windfall away from total financial transformation.” 

“You wake up in despair and you go to bed defeated. You don’t live within your means because you don’t even know what they are.”

More on retirement:

• Jean Chatzky shares major statement about Social Security
• Dave Ramsey sounds alarm for Americans on retirement
• Scott Galloway warns Americans on 401(k), US economy threat

O’Leary explains that people who feel this describes them to any degree should correct it immediately. He offers a first step people can take to get a handle on where they stand financially.

Related: Dave Ramsey warns Americans on Social Security

Kevin O’Leary explains one way for Americans to increase 401(k) contributions

In order to increase retirement savings and add a larger percentage of their income to 401(k) plans, people first need to get a good feel for where they are financially.

O’Leary suggests simplifying money management down to a single figure — either positive or negative. He encourages individuals to calculate their total earnings over three months, calling this their 90-Day Number.

The process starts with identifying income. If pay stubs aren’t easily accessible, reviewing bank statements can help track all incoming funds, including salaries, side jobs, and other sources of cash flow.

Next, he recommends listing all expenses separately — small purchases such as coffee, clothing, and snacks, as well as major costs such as bills, debt payments, rent, and car loans.

The key step is subtracting total expenses from total income. 

If the result is positive, the individual is in good financial shape and can immediately consider increasing their 401(k) contributions. 

A negative outcome signals a need for adjustments. The extent of necessary changes depends on how much spending exceeds earnings, requiring smarter budgeting to create space for investments in long-term financial security, O’Leary explains.

In the latter instance — after some planning, budgeting and hard work — a person can still reach the point of increasing investments in their 401(k) plans.

Related: Dave Ramsey sends major message to Americans on IRAs, Roth IRAs

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