Women and divorce: The financial impact

Divorce tends to be traumatic for everyone involved but, from a financial perspective, it can be especially devastating for women. According to a recent study from Allianz Life, the majority of women who underwent a divorce experienced personal financial crises afterwards.

Nearly 59% of the the women who participated in the study said that getting divorced was a literal wake-up call from a financial perspective, even in cases where they managed the household finances before the marriage breakdown. For these reasons, it is important that women understand how divorce is likely to affect them financially, so that they can prepare as they transition towards an independent future.

Get a solid understanding of your finances

Even if you were the one responsible for household savings and expenditures prior to the divorce, it is a good idea to consult a certified financial planner. A CFP can help you determine how divorce will affect your personal finances and advise you on steps that may be taken to get a more solid financial footing. After the divorce decree is issued, you will also want to consider the following:

• Health insurance: If you were previously insured via your spouse’s employer, then you now have to obtain your own coverage. One option is to continue benefits through COBRA. If you are working, then you may sign up for workplace-sponsored benefits. If neither option works given your situation, then there are many low-cost insurance packages available.
• Disability and life insurance: If you have dependents, such as children, then you should strongly consider getting disability insurance to cover their living costs—and yours—if you become too injured or sick to work. Life insurance will take care of them if you pass away prematurely. If you are employed, then both insurance types may be available through your benefits package. If not, then start researching options as soon as possible.
• Tax filing: A professional tax advisor can advise you on the best way to file your income taxes given your circumstances. If you are claiming the children as dependents, or receiving child or spousal support, then expert insights can help you prepare and file your return correctly.

While taking care of yourself is a priority no matter what stage or position you are at in life, after a divorce you need to really emphasize your financial well-being. Few people get married while acknowledging that the marriage could fall apart one day, but it does happen and making sure that you are always on solid financial ground is recommended.

If you are a woman preparing to file for divorce in New York, then working with an experienced family law attorney is an important part of receiving the financial resources you are entitled to, so that you may transition into your new life without money worries affecting your outlook. Contact Eskin & Eskin, P.C., a family law firm for family law needs, if you are considering filing for divorce. Our attorneys have more than 40 years of combined experience and can be reached for a free consultation at 718-402-5204 or www.EskinAndEskinLaw.com.