Money and Divorce for Women
My friend and fellow lawyer, Michael Sherman, recently posted an interesting article on his blog, AlabamaFamilyLawBlog, concerning how divorce affects women and their finances. And although the article wasn’t specifically written about the Memphis Divorces it’s a very intersting article. Any woman who is considering a divorce should read and think about the consequences.
According to recent statistics, U.S. divorce rates have decreased in recent years after a peak in the 1970s, but still remain fairly high. In addition to being an emotional breakup, divorce can bring about serious financial issues that can have long-term consequences on the economic stability of a woman.
According to recent studies, a woman’s standard of living decreases at least 30 percent after divorce, which means getting a grip on finances both during and after divorce is crucial for surviving intact.
- Don’t Bury Your Head in the Sand
All women-especially divorcées-need to overcome their aversion to money issues, educate themselves and set financial goals. Part of the reason why divorce hits women so hard financially is due to most of them being reliant on their husbands to take care of household financials while married and then becoming shell-shocked having to manage their own situation on their own.
Self-sufficiency is crucial, and these tips can help.
- Study Your Finances
According to investment advisor Lisa Fox, women often have no idea what they have financially. She says that during an after a divorce, they should be aware of all investments and read each financial statement, investigating anything they are unsure of. Fox also suggests keeping track of finances by copying all important documents.
Knowing what you have puts you in a better position for negotiation during divorce.
- Create a Budget
Draw up a post-divorce budget while in negotiations in order to provide yourself with a snapshot of the type of settlement you’ll need, keeping in mind that downsizing may be required for your lifestyle after divorce.
- Money: Not Just a Man’s Issue
Because women tend to live longer, earn less money during their lifetimes, and not be prone to investing, they have different financial needs than men. This makes getting a handle on financial issues is important, and should be done so sooner than later.
Divorce is never easy, but through common sense and financial responsibility, making the transition can be made easier.
