Women are more likely to struggle financially after a divorce. According to feminist magazine Ms, more than 50 percent of households are dual income, but most of the domestic duties fall on the women. This prevents most women from advancing in their careers and makes them more dependent on their partners. Studies show that women’s household income falls by an average of 41 percent after a divorce, which is twice the size of the decline men experience.
To help divorcées get back on their feet, we’ve listed below some helpful financial tips.
Understand what you have
Staying on top of your finances and assets can help divorcées attain financial stability down the line. Doing this entails collecting statements and making a list of all the assets you were able to retain from the divorce. These include personal property, real estate, liquid assets, business interests, retirement assets, and cash value life insurance. Do your due diligence to and take note of the value of each asset, as well as understand how you can leverage it to your advantage — whether it’s making use of your business interests or renting off your real estate.
Improve your financial literacy
To make the most of what you’ve retained (or gained) after a divorce, it’s important to develop financial literacy. In a nutshell, financial literacy is understanding various financial skills, such as budgeting, investing, and personal finance management. You can expand your financial literacy by doing your research and reading articles from trusted finance websites. AskMoney.com covers a range of topics, from credit cards to investing and even divorce advice. Such resources can help you improve your financial knowledge and empower you to make financially sound decisions. If you’re not fond of reading, you can check out other forms of insightful financial media such as podcasts, videos, and audiobooks from reliable experts.
Build your credit score
According to finance news resource TheBalance.com, a divorce can indirectly cause financial troubles that can lower your credit score. To illustrate, losing one of two household incomes may lead to financial distress and cause you to miss out payments on your bills, loans, and credit cards. Because the financial struggle may require you to rely on credit products down the road, do everything in your power to build your credit score. Doing simple steps such as utilizing less credit, opting for debt consolidation, paying bills on time, and monitoring your credit can do wonders for your credit score.
Consider liquidating your assets
It may be hard to let go of assets that you gain from a divorce. But in order to secure your financial future, you should strongly consider liquidating assets and investing what you earn. This can also help you avoid unnecessary expenses. For instance, it may be too expensive to retain and maintain a property you gained after a divorce. So, it may make more sense to sell it off and use the money to buy a more financially manageable property. If you don’t know how you can liquidate your assets, you should employ the services of a trusted financial planner.
Don’t let divorce ruin your financial future by being smart with the assets that you have. To learn more about various legal proceedings such as a divorce, be sure to read our insights here on Adkins Law.