Rebuilding Savings After Divorce
Even in 2021, there is an income gap between men and women. Divorced or separated women over the age of 65 have a median household income of $35,736 per year, with men earning close to $38,000. Married women and men over the age of 65 have median household incomes of $64,524 and $67,404, respectively. Those who are widowed or never married have even less money.
What this means is that in the event of a divorce, women are the ones who tend to suffer financially. The main reason for this is that women often lose out on wages in order to raise children or act as a caretaker for other family members. They make less over time, which affects them forever. On top of that, divorced women are more likely to have children and are often working in a capacity as a single mom.
Because of this, women need to be aware of how finances affect them and what they can do to thrive after a divorce. Here are some ways in which they can rebuild their retirement savings after a divorce.
Review Your Finances
Women really need to take a close look at their finances following a divorce. This may have been their husband’s job in the past, but now, as a single woman, this job is on them. They need to figure out what assets they have, get rid of any joint accounts, review insurance coverages, and update estate plans.
They also need to consider their budget and make cuts where necessary. This may mean downsizing their home or cutting back on entertainment. This may not be fun, especially if there are children involved, but it’s necessary if you want to live within your means.
Invest for the Future
Women also need to take advantage of all their investment opportunities. Are there any retirement plans or investment opportunities at work? If so, take advantage of them. Think about your lifestyle goals after retirement and invest accordingly. You may need to increase your risk level to make up for money you lost out on in the divorce.
Hire an Advisor
If you don’t know a lot about money, a financial advisor can help you get on the right track. They can help ensure you are making the right decisions when it comes to money. They can also help you understand all your options available and help you plan for the future.
Contact a Maryland Family Law Attorney Today
A divorce can set back a person financially, especially when the divorce happens close to retirement age. While anyone can be affected, women tend to face a higher risk of financial devastation.
The Columbia divorce lawyers at the Law Offices of Todd K. Mohink, P.A. can help prepare you for life beyond divorce. Schedule a consultation today to understand your options and what we can do to help you achieve your goals. Call (410) 774-5987 or fill out the online form. We have two offices to serve you.