Divorce is difficult for everyone involved, but it can be incredibly challenging for women who have not been involved in the family’s finances during the marriage. In addition to the emotional upheaval, women are often left with significant financial challenges.
Movies and television often depict ex-wives trying to get everything. However, real life offers us a much more challenging picture.
Financial challenges that women face
Divorce has a significant financial impact on women. Studies have shown that women experience a 27% decrease in income after divorce and are 27% more likely to fall into poverty than men. This decrease in income often leads to a decline in their standard of living and increased financial insecurity. Furthermore, if the woman stays in the family home, they have the financial burden of home maintenance. In contrast, most men see their household income increase by as much as 30%.
The gender wage gap significantly impacts a woman’s economic security. The gender wage gap is the difference between what men and women are paid for doing the same job. It exists in every country and typically increases as women advance in their careers. In the United States, women earn approximately 79 cents for every dollar earned by men.
A woman earning less than her husband is more likely to experience a financial decline after a divorce. She may also have difficulty providing for her children and covering basic living expenses. The gender wage gap is a significant contributor to inequality between men and women, and its effects are felt long after a divorce.
For all these reasons, it is crucial for women to be proactive during the divorce process to ensure they get the best possible outcome for their financial future. Good planning and working with the right legal and financial team to educate and guide you during divorce can alleviate these inequities.