This four-part article series explains the many financial pitfalls associated with divorce and how women can best avoid them through careful research and the right planning.
“50% of first, 67% of second and 74% of third marriages end in divorce,” says Jennifer Baker of the Forest Institute of Professional Psychology in Springfield, Missouri.
- Source: http://www.divorcepad.com/rate/
These may seem like terrible and depressing statistics, but they highlight just how important it is for women to make financial provisions in the event that their marriage too becomes another statistic. So, if you find yourself in a position where you are considering divorce, it is crucial that you begin making plans and doing the necessary research to equip yourself to face the impending and potentially rough financial times.
In this four-part article series, I explore, with the help of some investment advisors in Del Mar, the 8 possible financial consequences of divorce and how you can avoid them with the right planning.
Consequences of Divorce # 1: Empty Pockets
If you lamented the cost of living before, things are about to get a whole lot more expensive!
“You’ll likely find yourself dipping into your savings to foot the cost of your legal bills,” warn Del Mar financial advisors.
Then there’s the cost of moving out, getting a new place, seeing a psychologist and that exorbitant “accidental” retail therapy session at Oscar de la Renta. Divorce is not only a change of marital status; it’s a whole life revolution and money is needed to facilitate this change.
What You Should Do
If you foresee your marriage ending in divorce – whether it’s what you want or don’t want – do NOT sit about moping. You need to start squirreling away funds to sustain you through the expensive aftermath.
Consequences of Divorce # 2: Being Ill Prepared
Ending a relationship with a spouse is one thing: a single conversation that can take place in as little as an hour. It’s what happens afterwards that can take months and even years to sort out. This is why careful planning is so crucially important if it looks as though your marriage is going to end in divorce. Before you drop the figurative guillotine on your husband’s head, do some thorough research. Chat with a lawyer and your Del Mar financial and investment advisor about what you need to do and what you need to make provisions for.
Timing is also important. If your husband is due for a promotion, bonus, inheritance or raise, you may want to wait until he receives it so that you too can benefit. If you’re a few months away from the 10-year mark, patience and social security can reward you with your partner’s earning record. This may sound unscrupulous, but just as he has given up his time and energy earning that income, raise or bonus so too have you.
Whether you spent your time raising your family, tending to the house, in the office or all three, you are a team and all of your assets should be shared accordingly.
What You Should Do
Take the time to complete the things that need to be done before the financial and emotional turmoil hits at full force. While you still have access to joint funds, take the car in for a full service; perhaps get some new tires. Buy the kids the clothes they need and take them to the dentist. Book yourself a few appointments with a therapist, your financial advisor and perhaps a lawyer. This kind of planning can save you a lot of money and a lot of hassle post-divorce.
Stay Tuned for Part 2
Not sorting out your documents and overlooking assets… To read more about the possible financial consequences of divorce for women, stay tuned for the second installment of this four-part article series.
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