During divorce proceedings, people tend to think about the emotional toll it is taking on them. It isn’t until much later (sometimes months or years later) that the long term financial hit the divorced couple experienced is digested and tackled. According to a report by the US Government Accountability Office, divorce typically affects women’s Finances the hardest. On average, a woman experiences a 41% reduction of income after divorce. In her article, “Why Women Should Rethink Their Finances After Divorce,” Stacy Repacon explains that this reduction has several causes, including societal inequities in pay and years taken off for caregiving, which lead to overall less lifetime earning potential doe women. While these are circumstances that often cannot be avoided, there is something women can do to reduce the stress of an income reduction and different financial reality: Women can plan ahead.
There are several things a woman can do to plan ahead. One is to speak to a financial advisor. A financial advisor can help navigate the current financial situation and assist in planning for the future, when alimony and child support may end. Additionally, a woman may be able to continue her education during or soon after the divorce to eventually be able to move up to a better position in her field.
The most important thing is to look forward during divorce. Know that the uncertainty is temporary and that you will survive the emotional turmoil. Do not rely on child support, alimony, or any other temporary financial assistance. Have a financial plan and work goals in place as soon as possible so that years do not go by before finances are considered. Set a budget that conforms to your new reality- it is so important to live within your means, and this may mean accepting that at least for now, you will need to go without some things that you are accustomed to.
To read the complete article, go to: https://money.usnews.com/money/personal-finance/family-finance/articles/2017-08-14/why-women-should-rethink-their-finances-after-divorce
If you or a loved one is facing divorce, contact the experienced attorneys at Parra Harris Law (904) 900-1617