Your Family Matters

Divorcing women may be unaware of upcoming financial hurdles

| Nov 18, 2020 | Firm News

The findings of a study consisting of women in various stages of divorce showed that many were unprepared for upcoming financial “surprises.”

The women cited a variety of potentially problematic financial issues as a result of divorce, and, among all age groups, there was one universal concern.

About the study

The online marketplace Worthy conducted the 2018 study entitled “Building a Financial Fresh Start.” The participants included 1,785 women who were either already divorced, facing divorce or somewhere in the process. When asked if they had encountered any unexpected financial issues, 38% of the women aged 55 or older said they had while nearly half of those in younger age groups admitted to experiencing financial surprises.

Financial role in marriage

To better understand these answers, the survey questioned participants about their financial role while married. About 23% of women between the ages of 18 and 54 said they had relinquished all marital financial control to their husbands while 18% of the women 55 and older had done so.

Biggest financial concern

Many of the survey participants worried about having to take responsibility for all post-divorce financial decisions, including earning a living, managing a budget and saving and investing for the future. Overall, the biggest financial concern was having to live on one income.

Retirement worries

The study showed that 38% of the 55-and-over age group expressed concern about the retirement years, a number that was twice as high as reported by millennials who have more time in which to prepare for retirement and become educated about investment matters. The survey highlighted how important it is for women to cultivate an understanding of their finances while married, just in case divorce ever appears on the horizon.