Pszenny also urged those getting a divorce to update their estate planning documents, such as wills and powers of attorney and account beneficiaries to reflect their new marital status. Remember your attorney is not your counselor and not your financial adviser - have those people specially dedicated to your needs,” Hanson said. The financial analyst should be part of a team of coaches that includes a divorce attorney and a counselor. Women are comfortable with the vulnerability to get the understanding they need.” “Women are very comfortable asking for outside advice. “Women are more likely than men to reach out to an outside expert,” Hanson said. Hanson recommends hiring a certified divorce financial analyst or CDFA, who is specifically trained to avoid the pitfalls of divorce. But for those getting a divorce in their later years, it may not be possible to return to work. It may require you to work longer or return to work or get training for a new career, Hanson said. It’s something people need to get used to,” Pszenny said. “Money doesn’t go as far for two households as it did for one. If you’re considering a divorce at any age, have a clear understanding of the cost of living and how the division of income will affect your budget, Hanson said.ĭerek Pszenny, co-founder of Carolina Wealth Management, warns that the standard of living will decline for both spouses due to the cost of maintaining two separate homes rather than one. Regardless of who initiates the divorce, there are some issues to be aware of. That’s much more severe than for men, who see a decline of 21%, according to the Center for Family and Demographic Research at Bowling Green State University in Ohio.Īfter a gray divorce, 27% of women live below the federal poverty guidelines, compared with 14% of men, the center said. Older women who experience a divorce see their standard of living decline by 45%. Ultimately, the top reasons for divorce include verbal, emotional or physical abuse differences in values and lifestyles cheating and alcohol or drug abuse, according to AARP. Waiting until the children leave the home is one reason for delaying divorce until later in life, AARP found. They’re also making changes to maintain a quality of life that supports their level of happiness.” “They say, ‘I have a new level of financial status that I’m willing to accept in order to be happy.’ Women are becoming more educated with finances than ever before. “Finances are not as important as happiness,” Hanson said. In addition to women initiating a divorce later in life more often, fewer widows remain compared with widowers, according to Renee Hanson, a private wealth adviser with Ameriprise Financial. It’s not like the stereotype of other generations when the woman was financially dependent on the man and had no choice but to stay,” Hirshman said. “A lot of it has to do with independence and feeling financially secure. In the majority of cases, women are driving the divorce decision,” said Susan Hirshman, director of wealth management for Schwab Wealth Advisory and the Schwab Center for Financial Research. “We’re seeing more women choosing to get divorced later.
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