Divorce is tough for everyone, but the financial repercussions typically fall more heavily on the woman. Going through the process of getting a divorce is challenging for everyone concerned. Research conducted by the Government Accountability Office (opens in a new tab) indicates that women over the age of 50 who divorce will suffer an average reduction in their income of 41%. In comparison, men will only see a reduction of 23%. In addition, these women have fewer years left till retirement and less opportunity to make up for lost ground financially than younger women have. According to the Pew Research Center findings, the divorce rate for older couples has more than doubled since the 1990s, even though the divorce rate for younger couples has decreased. A Terrible Setback for Women Who Have Been Through a Divorce Following a divorce, the quality of life for the average woman drops by 73%. However, according to Lenore Weitzman, a sociology and law professor at George Mason University, her ex-husband has a 42% higher quality of living than before they divorced. “Women are more likely to feel the financial burden of divorce,” says Shweta Lawande, CFP®, CDFA®, and lead adviser at Francis Financial. When it comes to divorce and finances, this firm is your best bet. Women may see a reduction of up to 50% in their retirement assets from traditional retirement accounts such as IRAs, 401(k)s, pensions, 457 plans, and 403(b)s. In addition, she is unable to recover since she typically earns less in her profession. Also, she spent time away from the workforce caring for her children, all of which contribute to the fact that she cannot recover.” Due to the divorce gap, there can be differences between married women and those who have experienced a divorce. Shweta Lawande, CFP®, CDFA®, lead adviser at Francis Financial, which specializes in divorce financial planning, claims that “women are more likely to feel the financial hardship of divorce.” But only 43% of women who have been divorced share this sentiment. But since then, the stock market volatility caused by the pandemic has made divorced women and the rest of the American population feel even more financially vulnerable. Unfortunate Knowledge Gaps While divorced women employees have the lowest retirement confidence in the survey, they also lack understanding about what they need for a financially secure future. Divorced women, for example, were less likely to feel highly or moderately confident in their ability to estimate the amount of money they would need to save by retirement. Divorced women are concerned not only about having adequate savings for their golden years but also about determining how much they will require. To assist bridge the gender pay gap, Lawande recommends that women consult with a Certified Divorce Financial analyst. This would enable them to learn more about their current financial situation and the steps they can take to better prepare for retirement and other common financial challenges. She also advises them to employ a lawyer well-versed in their state’s laws to obtain a financially advantageous settlement arrangement. According to Miller Zeiderman LLP matrimonial attorney Lisa Zeiderman, women usually feel the financial ramifications of divorce more severely than males. After a divorce, you may have far less money saved for retirement than you had anticipated. Losing retirement savings in a divorce is a major setback. This is particularly true if you haven’t hired an attorney to defend you and haven’t taken any steps to protect your interests and financial future. The wage and savings gap creates an uphill battle. Don’t rely on an employee’s salary to make up the difference. Women earn around 20% less than men, resulting in lower pensions and less money saved in employer 401(k)s and other retirement plans. Women have higher life expectancies than men, but this can be financially disastrous for a divorced woman in her 50s, 60s, and 70s. She is engaged in a losing battle against time to amass sufficient riches to last her for the remainder of her life. When you’re in your 30s or 40s, it’s not the same as when you’re in your 20s. You still have time to rebuild your assets, cut your spending, and increase your income. Divorcing Women’s Solution “There is no room for error at this period of your life,” says Zeiderman, a Certified Divorce Financial analyst, in addition to her legal degree. Mistakes can be expensive, and most women over 50 do not have time to recover. As a result, it is necessary to choose the right divorce team, which includes a seasoned divorce lawyer and a divorce financial specialist. “The women who fare best post-divorce are those who not only have the right divorce team but have also ‘leaned into’ the finances,” Lawande adds. “They consult with skilled divorce counsel to better grasp the ramifications of property partition, Social Security and pension payout possibilities, spousal support payments, and health insurance coverage.” When going through a divorce, it’s important to remember not to make certain mistakesâ€â€for instance, concealing assets from your spouse. To avoid paying out as much in a high-stakes divorce, some people conceal assets. You could face legal issues, legal fees, and court time if the assets are traced and found. Consequences of failing to disclose assets to a spouse may include a settlement that awards more money to the other party, a contempt of court order, or accusations of fraud or perjury. Final Thoughts for Women on the Verge of Divorce Divorce is difficult, but you do not have to go through it alone. The divorce business has stepped up to the plate with many legal, financial, and emotional support structures. With the proper legal counsel and financial security, this would help those making a move from married life to single life. To ensure that you understand your divorce’s legal and financial problems, consult a highly recommended divorce attorney in your state and discuss everything in detail.
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