Are women better off financially after a divorce?
There are several financial issues that need to be considered when going through the divorce process.
April 17, 2013
Are women better off financially after a divorce?Article provided by Brave, Weber & Mack, APLC
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A new survey has found that 62 percent of divorced women, who have a net worth of at least $1 million, were better off financially post-divorce. The survey mirrors a Pew Research Center report that found 20 percent of women earn 25 percent more after a divorce.
According to the survey by Spectrem Group, a financial consulting firm, 73 percent of millionaire divorced women, are knowledgeable or very knowledgably about investments. And many of the women interviewed confessed to being more knowledgeable about money than their ex-husbands. An overwhelming number of these women, approximately 77 percent, also say their divorce has left them better off emotionally as well as financially.
A rich woman's financial well-being differs drastically, however, from a woman with an average net worth. A 2009 study suggests that, on average, a woman's income drops 20 percent after a divorce. And according to the U.S. Census data, wives are twice more likely to live in poverty post-divorce than their husbands.
The importance of financial planning during a divorce
Regardless of your gender or net worth, anyone who is in the midst of a divorce, or is contemplating a divorce, needs to be cognizant of the family finances. Follow these tips to protect your assets and plan financially for after your divorce.
-Prepare a reasonable monthly budget that documents the current financial expenses of the household and also an anticipated budget for when you are living apart from your spouse. Budgets are an important part of the divorce process because they show you and your spouse's standard of living, financial resources and need for support.
-Find and copy all of your prior tax returns. Both parties to a divorce are required to disclose all of their financial interests. Tax returns are always the first thing requested.
-Avoid making any large purchases until the divorce is final. Anything you buy while you are married is generally considered marital property and could be subject to division at the time of divorce.
-Make a list off all of the assets and liabilities that you and your spouse own and owe, including retirement assets, real estate, insurance policies, and credit card debt.
If you are considering divorce, contact an experienced divorce attorney in your area to guide you through the process. Divorce is difficult both financially and emotionally. A skilled divorce lawyer will educate you on your rights and responsibilities to help you plan responsibly.