Dealing with the Financial Aftermath of Divorce

Ending a marriage significantly changes the lives of everyone involved. And if you're a woman, one of the greatest changes you'll see is an impact on your finances.

Studies show that women suffer more financially than men when a marriage ends.

• A quarter of all divorced women in America live at or below the poverty line
• A woman’s standard of living decreases anywhere from 27 to 45 percent in the first year after a divorce while a man’s rises by an average of 10 percent.¹

Being single again means that you're solely responsible for your finances, perhaps for the first time. In many households, the man is the one who manages the income, pays the bills, resolves credit issues and makes investment decisions. Now, you're faced with juggling all of these responsibilities on your own.

Deal with it, and move on

It’s best to deal with the past and plan for the future.

Take steps to make sure that being single again doesn’t mean being broke.

• First, focus on your future finances as much as you do your past
• When preparing for a divorce, reviewing your past financial status is necessary
• You need to know details such as who provided the income during the marriage, how much debt has accrued, and which assets each of you contributed, so that you can reach a fair and equitable settlement
• Once you've figured out your net worth and previous financial status, you need to plan for your financial future

Seek professional help

Preparing for a divorce means preparing a financial plan for yourself. If this seems intimidating, consider contacting an investment professional to help guide your dream for a secure financial future. He or she can also help you define your financial goals and develop a way for you to reach those goals.

During the divorce, there'll be many decisions to make that could significantly impact your finances. Topics like taxes, real estate, insurance, retirement, credit management and budgeting can often be confusing and difficult to understand. Seeking professional help can help you make educated decisions about things that could affect you for many years to come.

 ¹Women's Financial Network, www.WFN.com, 2003

NFW-0172AO.2