If You Are a Woman Contemplating Divorce: Know Your Finances

Some people may think that divorce proceedings are at an all time high but statistical evidence points towards a different reality. Recently, an economist at the University of Michigan has discovered that divorce rates have dropped from the figures that were reported in 1981. 1981 might have been the year where divorce was at an all time high but it should be noted that the recent drop in divorce rates may have come as a result of the fact that fewer people are getting married. Still, economist Justin Wolfers is adamant about the fact that divorce rates have dropped by 24%. Statistics also point to an interesting phenomenon surrounding women and divorce.

A number of things have changed since the 1980s and divorce rates are one of them. Another interesting development revolves around the role of women in marriages and their relatively new role as primary earners in a partnership. More women have become the primary breadwinners in their households. While this may be a dramatic change, it fails to drastically influence the way financial decisions are carried out in a family unit. A considerable portion of these primary earners still leave financial decisions related to large purchases, investments, and real estate to their husbands.

Men continue to remain largely responsible for the way resources are being distributed in a household. Women who are contemplating filing for divorce need to develop greater financial acumen before they decide to finalize the proceedings. Women who are primary earners need to be aware of all her sources of income, her assets, and credit standing before divorce proceedings commence. A failure to assess the financial situation could prove to be costly during divorce proceedings especially if the wife has delegated most of the financial decisions to her husband over the course of their marriage.

Statistical data also points to rising divorce rates within the 55 – 64 age brackets. Women are found to be more likely to initiate divorce proceedings after the age of 35. Again, financial literacy is required before divorce proceedings can take place. Women who are not the primary breadwinners in a marriage may be left at a disadvantage if they do not have the resources to adequately prepare for retirement. In cases where a comfortable retirement is already planned out, divorce proceedings may significantly weaken it when assets are divided between spouses. It is important for people involved in divorce proceedings to avoid the trap of making emotional decisions. If you need help discerning whether an asset could help you achieve long term financial independence, legal counsel is recommended. Daniella Lyttle at Lyttle Law Firm, PLLC could provide you with all the help that you need. Contact Lyttle Law Firm, PLLC by calling 512-215-5225 to begin.