Women, Money & Divorce
Today’s article is one for the ladies. We want to discuss the unfortunate topic of divorce and how it impacts on you financially. But it’s not just for the unfortunate ones whose marriage has or might breakdown. This article is about empowering women to understand their financial position and ensure that we remain on track to reach our own financial goals regardless of what life throws at us.
Even if you were married to Tom Cruise, Tiger Woods or Arnold Schwarzenegger, when you divorce, it’s highly likely that your financial position will be negatively affected. Sure, their divorce settlements might have had a couple more zeros on the end of the figure but assets still have to be divided.
A recent study by the Australian Institute of Family Studies has shown that women are worse off than men after a divorce, particularly if you have kids. Women with dependent children found it particularly difficult to recover financially, due to problems balancing childcare and work, while women without dependent children financially recover on average after around six years.
So what does that mean for you if you’re going through a divorce or contemplating your options in the husband area? You need to take time out from having thoughts of unfortunate accidents happening to your man and concentrate on organising your finances. You should:
• Understand your financial position by visiting a trusted financial planner
• Reassess your financial goals as it’s all on you now. What do YOU want to achieve?
• Get a Post Office Box for a single mail location regardless of your residential address
• Revise your Will or your ex could be entitled to some money on your passing
• Update your Superannuation Nominations as binding nominations remain valid even after a divorce
Still like your partner? Then you should look at your own financial position and take steps to ensure your own financial goals are not jeopardised or reduced because of taking time off to have kids or because you’re not the financial controller of the family. Some tips to ensure equality in your financial position includes:
• While you’re working, contribute extra funds to super to compensate for the time when contributions stop during the child raring year.
• If you’re taking time off to raise your children, keep your skills and education current so that getting back into the workforce later isn’t a challenge
• Have some assets in your name solely. This ensures access to funds at all times.
• Ask about your financial position. You don’t have to take over the family finances but both parties to a relationship should at least understand where all their money is and going.
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