For many reasons, a divorce often has a negative affect on finances for both men and women. A few decades ago, women often fared worse after a divorce than men because they lacked work experience and because women earned less than men.
Society has certainly changed in recent years, but do women still face a more difficult financial future after a divorce than men do?
Negative factors that affect women
An article on CNBC quotes a female CEO of a financial institution watching her grandmother endure an abusive relationship because she did not have the financial stability to seek a divorce. The CEO believes that same kind of financial dependency still exists for many women today. A few statistics illustrate the matter. One study reveals that about 56% of women allow husbands to make the all of the important financial decisions. Women may need a 30% increase of income to maintain their lifestyle after divorce, while the standard of living for men tends to increase by 10%. This same CEO says that many women never fully recover from the financial impacts of divorce.
Positive steps women can take
An article on the Kiplinger website provides a somewhat more upbeat view of the situation of women, divorce and finances. One matrimonial attorney finds that working women have a better knowledge of personal finances, yet still have concerns about financial security and maintaining a comfortable lifestyle. In this area as in others knowledge is power to some extent. A women going into a divorce should learn as much as possible about her financial situation. It will help her envision what her post-divorce life will look like, and it can clarify her negotiating positions during proceedings.
