After a divorce, it is important to plan your finances wisely. Your situation has most likely changed dramatically, so it it vital to account for you and your children’s needs both now and in the future.
Unfortunately, many people do not take steps to ensure a more positive financial future. And, according to a recent survey of certified public accountants (CPAs), women are more likely to up their financial planning efforts after a divorce compared to men.
The survey, conducted by the American Institute of CPAs, found that after a divorce, women are more likely than men to do the following:
- Actively seek out financial advice (60.4 percent of women vs. 35.2 percent of men)
- Improve spending patterns and habits (42.3 percent of women vs. 11.7 percent of men)
- Increase savings toward retirement (41.3 percent of women vs. 16.4 percent of men)
- Seek out a job (40.2 percent of women vs. 20.6 percent of men)
There also were similarities between genders when it came to some financial habits. Both women and men experienced a deterioration in their spending habits (25.7 percent for women and 24.9 percent for men. Many of the CPAs surveyed found both genders fared the same for improving spending patterns and habits (46 percent) and increasing their savings for retirement (42.3 percent).
Although women seemed to do better than men at financial planning after a divorce, the fact still remains that two-thirds of retirement-aged divorced people can do better. In addition to the actions cited above, CPAs in the survey recommended that divorced individuals understand:
- How to manage their personal finances
- Long-term financial planning consequences of their divorce settlement
- The tax implications of a divorce
- Changes needed to estate planning documents
We would love to assist you with your financial questions and concerns related to your divorce. Contact us for an initial consultation.
