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As any professional financial advisor can confirm, without good planning, a divorce can leave the ex-wife with a worse deal than the ex-husband’s.
Many finance pros are now turning their business toward helping the female get half of the divorce equation. They know that there is a common worry among women who are getting divorced (especially older women who are divorcing) — the fear that they’ll eventually end up penniless, perhaps homeless.
A Simple Property Division May Not Be Equitable
In an article titled “How to Help Older Divorcing Women Avoid The Bag Lady Blues” in the Journal of Financial Planning, author Carol Ann Wilson notes that divorced women are “swelling the poverty rolls.” She contends that this is because divorce judges are trying to split each couple’s property 50-50, but they are overlooking one major asset of the marriage — the husband’s career.
The Income Disparity May Last Forever
As Wilson notes, “Property is divided just once, but career assets continue to produce income regularly for years.” In many marriages, the wife has followed a lower-paying career (or worked only without income in the home), whereas the husband has a long work record at a higher-paying job, gaining seniority and the health benefits, disability insurance and vacation pay used by the couple or family. A simple 50-50 split of assets may not be fair, since it doesn’t take into account the husband’s future income.
Let Go of the House
In addition, women often fight to keep the family house, “trading away” other assets to be awarded the home, even though they may well not be able to continue to afford it. Wilson and other financial advisors often suggest to divorcing women that they give up the house and take cash instead — in the form of pensions or investments.
Consult a Financial Planner
Getting guidance and assistance from a certified financial planner is a good idea even if the divorce is amicable. Financial analysts can help explain complex issues such as:
Talk to a Divorce Attorney in Your Area to See What Your Legal Rights Are
If you are seeking a divorce, contact a qualified divorce attorney in your area about your financial questions and concerns. Many divorce attorneys work in concert with or can refer you to a professional financial advisor.