The liquid is an economic term for cash used in accounting. It is quite an important term. This name suggests that it is the cash, which we use to fulfil our requirement. In general, our society shows that liquid is one such thing that seems more appropriate on the male hand. But the women financial condition after the divorce arises a problem when a woman needs it to fulfil her requirement.
Women usually face many problems when it comes to divorce in a heterosexual marriage. According to stats – when both are employed, the man always outruns women with 77.8 %. This situation shows that after post-divorce women almost losses half of her household income.
Estimated cases cleared that in 3 domains in which women have to balance her when she decides to take divorce are children, home, well-being. And to fulfil this requirement, women have to be financially strong and stable.
In this article, we will talk about the financial problems that women face after divorce. Then we will move on to things you should consider doing when divorcing. We are also advising a few tips on how women after divorce can improve her financial situation.
The Biggest Financial Challenges Women Face After Divorce:
The biggest issue is Money:
Women financial condition after divorce under number 1 rank in terms of women’s top concern, followed by worries about their children. This thing shows the seriousness of the matter. And what’s more brutal is declining post-divorce income to the women.
According to the research conducted by the school of Economics women – who worked after their marriage experiences a 20% decline in income as their marriage ended. On the other hand, men experience a 30% of the rise in their income.
The poverty rate of women after a divorce is 27%, nearly three times than men. All these stats speak volume on how worst women financial condition after divorce can be.
Raising children, impact women financial condition after divorce:
You can easily relate to the relations between financial problems and worries about your children. In terms of stat, every three women out of 4 are concerned about their children futures.
They found themselves worrying about the matters whether they would have enough cash to raise their children. It’s just not the financial situation that is worrisome, but your mental health too. To look after your kids, you have to first care about yourself.
Finding A Place to Live:
In most dramatic Television shows, you often see the women walking away with small fortune including, the family house. The reality is far away from the dramatic series. According to researchers, millions of women find themselves looking out to find a safe home after divorce.
This timing couldn’t be worst. Women have to look for a home to live on while she is already on a tighter budget. And living in a home is another factor to worry about, as it adds more bills. Bills that include maintenance fees, homeowner association costs, and higher utility bills.
Things You Should Consider When Divorcing:
Your Investments and Property:
When divorcing, the laws that will govern how property will be distributed varies from state to state and from country to country. For example, the laws of some states believe in 50-50 distribution of property. Other states distribute in terms of “equitable” division. According to which distribution of property will be fair but not equally.
Therefore, we advise that you must hire a lawyer who really knows and understand local laws. It is also important that you get independent, outside valuations.
Your house is a place where you feel safest and at ease. Another fact is that your house is also an asset. According to Stirrat, one of the mistakes divorcing women makes, is to try, and keep the marital home, even when they can’t afford it. Stirrat suggests to put your emotions aside and appraise your home.
Work On Your Retirement Assets:
When conversing with your divorce lawyer, it’s always a good idea to include your accountant. The reason behind it is that it needs special care when you transfer one person’s retirement account, to another. To make sure that there are no tax implications.
There’s one more thing you need to keep in your mind if you have been married for ten years or more, you are entitled to 50% of your husband benefits.
How To Tackle Women Financial Challenges After Divorce:
Hire A Financial Adviser :
We understand that it is tempting to pursue a do-it-yourself divorce to save money on attorney’s fees. So, you can avoid going to court, and get the ordeal over with as early as possible.
But this situation is good until both you and your husband agree on dividing up the assets equally. Considering that your spouse is not hiding any assets, from you. And if you agree, on child custody.
However, if things get complicated, Doscow suggests to save money, and hire a divorce mediator to help you and your spouse reach an agreement. According to Attorney Emily Doscow, the average amount of the attorney’s fees if of $20,400.
Redesign your spendings to accommodate these new changes.
No one can deny the importance of cash but, sometimes we took it for granted when all our expenses met. We have our list of items that we buy every week or month, even though they are not required.
Divorce may create new obligation such as child support and alimony to pay. Hence, our spending list requires a bit of remodelling. Figure out your source of income and priorities your essential needs. Find out whether you have enough to maintain your current standards of living. And if not, then you’ll need to make changes.
Debt can be a headache, So, take it seriously.
Often, divorce leaves you in debt due to legal bills and various costs for making a new start.
So, make a plan to deal with this debt as soon as possible.
Among many approaches, one is to refinance the debt. A personal loan may help you smoothly reduce the interest that you’re paying on your debt.
Be remember to work-out your budget. It will help you to send extra payments to keep this debt in a hold and allow you to become more financially stable.
Change your tax withholding
Tax situation will inevitably change after divorce, so be susceptible to these changes and don’t ignore them.
It depends on whether you can claim your kids as dependents or not, you can either file as single or file as head-of-household. Anyway, you must adjust your money the way your employer withholds from your paycheck.
In this article we told you the challenges faced during and after the divorce. We even explained what you can do to save yourself from financial crisis. We hope you got what you were looking for.