Preparing Women for the Financial Hit Following Divorce
Finances are a chief consideration in any divorce. While both parties stand to lose ground financially, for women, the financial hit can be devastating. Even so, three in four women who are divorced are happier now than when they were married, despite significant financial challenges.
Contributions to the Financial Hit
According to the United States Government Accountability Office, the household incomes for men dropped an average of 23 percent following a divorce, while women faced a decrease of more than 40 percent on average. Even though there have been some improvements in earning power for women in modern times, women still earn considerably less than their husbands in most marriages—an average of 69 percent less. Additionally, more women defer to their husbands when it comes to financial plans and investment, putting them at a big disadvantage to their husbands when they divorce. Any woman facing a divorce needs to be aware of these statistics and be prepared for a future that may not look very rosy financially.
Long Term Thinking
Contrary to the immediate issue of day-to-day survival, seven in ten women in various stages of divorce report that retirement savings is not a central financial concern. Since women are projected to live beyond 80 years, that could be a real problem down the road.
Address These Issues Before Signing Off on Divorce
In a rush to get out of an unhappy marriage, too often women—particularly homemakers– neglect to address issues that could be critical to them long-term. Some issues include:
- Home maintenance;
- Health insurance;
- Social security;
- Retirement accounts;
- College expenses for children after child support ends;
- Wedding and other expenses for children beyond age 18;
- Tax changes;
- Changes to estate plans and wills.
Did Money Trap You in Your Marriage?
For many women, it has simply been part of marriage to submit to the financial directives of their husbands. While women dealt with the majority of housework and childcare issues, they watched their husbands go out and earn a living and progress through a male-dominated work world. Far too many men did so without much thought to their wives’ contributions, which allowed those men to follow their career dreams. Women, meanwhile, made due with lesser jobs and bounced in and out of the working world as they had children and prioritized the home over their careers. This lesser earning power may have trapped them in unhappy marriages, as they were unsure of their ability to make ends meet on their own.
We Fight for Best Outcomes for You
The experienced Boca Raton divorce attorneys at WiseLieberman have worked with financial inequities before and will always fight for the best possible short- and long-term outcomes for you. To discuss, schedule a confidential consultation in our Boca Raton office today.
Source:
time.com/6588974/money-marriage-trap-lyz-lenz-essay/
