Financial Planning for Women after Divorce

Financial Planning for Women after Divorce

Core Facts

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We’ve all heard that 50% of marriages end in divorce. But is that really the case? The stats would suggest otherwise. A recent data study by The New York Times revealed that about 70% of marriages that began in the 1990s reached their 15th anniversary, up from roughly 65% of those that began in the 1970s and 1980s. 

And according to a recent study, women are better prepared for their financial lives post-divorce. They are far more likely to seek out financial advice, improve spending habits, seek out employment and contribute to retirement savings. 

“When couples get divorced later in life, there is often one partner in the relationship who handled all of the finances,” said AICPA Personal Financial Planning Executive Committee member Tracy Stewart in a statement. “In my experience, it’s usually the husband, particularly in Boomer-age couples. In many instances, this leads to one person in the relationship not having an accurate picture of the family finances, including their retirement savings. It is essential that couples who get divorced later in life take a long view when dividing assets and making financial decisions.”

The emotional consequences of divorce can be devastating. But the financial consequences can be severe, too. The standard of living for both spouses tends to drop after a divorce. This is often a result of increased expenses. You could now be faced with expenses that were previously shared, mortgage or rent payments, utilities, furniture, appliances, supplies… they add up quickly. 

Ultimately, it is important to remember that your life will change after a divorce. You will most likely need to make some sacrifices, but if your financial planning hat is on, you could land on your feet, and begin a new chapter with a bright and hopeful future. 

Steps that people near retirement age could take to better prepare themselves for divorce are:

1. Understanding how to manage their personal finances
2. Understanding the long-term financial planning consequences of a divorce settlement
3. Understanding the tax implications of a divorce settlement

Additional steps would be updating wills or trusts, increasing saving for retirement, and
decreasing spending. Establishing a pre-nuptial agreement is a step that would better prepare you financially for a divorce as well.




Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. 

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC


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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website:

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Jake Mendlinger
Account Manager
516.829.8374 X 232

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