People often do not realize how expensive divorce can be. Women can be especially “financially vulnerable,” during a divorce.
Because women often face significant obstacles when it comes to their financial future. Women usually live longer. That means they need more money.
Yet while women need to make their money work longer they frequently leave the workforce to care for family. In other words they frequently have less of their own money than men but must make it work for a longer time period.
Time outs may be helpful for disciplining children but can be disastrous when it comes to earning money. Women often provide everything a growing family needs but their own financial needs are usually under-covered or not covered.
When it comes to finances, women typically have some catching-up to do.
Divorce or widowhood can easily make anyone “suddenly single.” Since having to suddenly manage your finances can be complicated, please consider the eight points below:
8-Point Women’s Divorce-and-Money Checklist
- Understand your cash flow.
- Have emergency savings to cover six months of living expenses.
- Reduce debt.
- Save for retirement.
- Realize compounding and dividends are your friends. Credit cards are not.
- Utilize basic financial planning techniques such as asset allocation and diversification.
- Monitor your credit score. The lower your score, the more it will cost you in higher interest charges.
- Have adequate life insurance coverage.
It does not get easier. Below are a few possible expenses for which you may be responsible once your divorce is final:
- Rent / mortgage
- Health, homeowners and auto insurance
- Basic expenses like groceries, cell phone, transportation and entertainment
- Retirement plan contributions
- Non-covered medical/dental expenses and prescription medications
- Home and automobile maintenance
Divorce is often difficult and painful. Paying for your post-divorce life does not need to be providing you invest in sensible planning. If you think a divorce may be in your future call us. We can help you through the transition.