Are women more likely to feel the financial impact post divorce? Yes, according to a research conducted by the Australian Institute of Family Studies.
The study shows that women’s household income dropped significantly after divorce, while males’ incomes continued to rise.
One way that women can ensure more income equality when it comes to divorce is to hire a support team, including a reputable family law lawyer, financial planner and tax accountant.
Unfortunately, the study also shows that it took as long as six years for some women to return to their pre-divorce income by increasing their participation in the labour force, re-partnering and government benefits.
What about men? The AIFS’ study reveals that men felt stronger feelings of isolation and loneliness than women after a divorce. Two years after a divorce, 24 per cent of men reported feeling isolated – a figure that’s double that of women’s, which sits at 12 per cent.
So how can women increase their post-divorce incomes these days? Women in general are better educated today. This has led to better paying jobs, more income equality and perhaps even a stronger financial position than their husbands. Women also tend to be more involved in the family finances as well as their knowledge of the family’s credit, debt, retirement accounts and investments.
Here are some quick tips for women about divorce and your finances:
In many situations, the primary breadwinner (usually the husband) focuses on the financial big picture, which usually means investments and retirement plans. The other spouse may be responsible for bills or knowledgeable about about bank accounts but tends not to know as much about the big picture.
Unfortunately that means they usually suffer most financially, so it’s important that you are informed about all of your marital incomes, property, taxes, investments, insurance and retirement. Make copies of all financial statements.
Be Debt Savvy
Make sure you keep abreast of all debts incurred before, during and after a marriage. Debt accumulated between the time you file for divorce and the day your marriage has officially ended can get tricky. For the best results, see a family law lawyer for advice before you file for divorce.
Establish Your Own Credit
Many couples have joint credit cards and bank accounts when they are married. However depending on what age you were when you got married, and how long you’ve been married, you may not have a strong personal credit history so it will be important to establish and build credit in your own name.
Credit is needed for important life transitions, such as renting an apartment or getting an account with the energy company.
Create A Supportive Community
Divorce or breakup recovery is a stressful, painful and life-changing process. You have just lost your best friend and partner so it’s natural to need someone who will listen and let you know that you are wanted and loved. For these reasons, having a supportive community is critical to your recovery.
A community can be a religious/spiritual group, an online community, a group of friends whom you ask to support you, and your family. Make sure your community clearly knows that you need their support and how you need to be supported.
A post from Women In The Black – A community where the modern Australian woman from all walks of life can learn, share, discuss and act on opportunities to take control of her finances and ultimately secure a stable financial future.
General Advice Warning
The Information on this page has not taken into account your financial situation, needs or objectives. Before acting upon any advice, you should consider whether it is appropriate for you.