Ways Women Can Be Financially Unprepared During Divorce

 Posted on January 21, 2020 in Divorce

A financial literacy gap between spouses can cause problems when you are trying to support yourself after a divorce. If you are unsure of how to use your divorce to secure your financial future, you need to address the issue with your divorce attorney and a financial adviser before you start the negotiations. Traditionally, women were at a disadvantage when it came to financial literacy in a marriage. That has changed in recent decades as more women are in charge of or share responsibility for their marital money. However, a recent survey conducted by Worthy and the Association of Divorce Financial Planners found that some divorcing women are still uncertain about their personal finances:

1. Few Women Used Financial Planners: Only six percent of the women who answered the survey said that they used a Certified Divorce Financial Analyst during their divorce. Sixty percent were unaware of CDFAs, and 30 percent could not afford one. This does not mean that they were without any financial advice because attorneys can help their divorce clients with financial planning. However, 61 percent of the women said it would have been valuable to work with a financial planner in addition to their attorney. 
2. Women Were Less Confident About Finances Outside the Household: More than half of the women said that they had enough knowledge to make informed decisions about household expenses, health insurance, debts, and dividing assets. If they had children, they also considered themselves knowledgeable about child-related expenses. They were more likely to say that they were unfamiliar with spousal maintenance and taxes. To be fair, most people do not have a reason to be familiar with spousal maintenance while they are married.
3. Many Women Did Not Have a Plan to Replace Maintenance Payments: Thirty-five percent of the women said that they receive monthly support payments, and 42 percent of those women said that they have not planned for how they would replace the income from support payments if they end. Even if you are receiving permanent spousal maintenance, you may need a backup plan if your former spouse dies or loses a significant portion of their money. Plans could include increasing your work income, cutting down on your living expenses and selling luxury items.

Contact a DuPage County Divorce Lawyer

Financial planning is an important consideration for everyone because of the ways that divorce can affect your savings, disposable income, and retirement benefits. A Naperville, Illinois, divorce attorney at Calabrese Associates, P.C., can work with a financial planner to help you with your post-divorce finances. Schedule a consultation by calling 630-393-3111.

Source:

https://www.worthy.com/blog/divorce/finance/worthy-and-the-adfp-financial-survey-results/