Take back control – understanding the financial impact of divorce

Financial planning is an essential aspect of everyone's life, but especially for women who are getting divorced. It often involves significant financial changes, and they need to make important decisions to secure their financial stability once the divorce is settled.

Divorce will often create challenges, especially for women, such as loss of income, asset division, increasing child support costs, and the knock-on effects it can have on their retirement planning. In many cases, women may have relied on their spouses for financial support during the marriage, making them vulnerable to financial uncertainty after divorce. Financial planning can help women take control of their finances and create a solid financial foundation for their future.

During separation, it is likely that income and expenditure will be materially impacted, and so creating a budget is essential. This will enable you to understand your monthly expenses, including mortgage or rent payments, household bills, school fees and pension provision, among others. Once you have a clear understanding of your monthly expenses, you can create a realistic budget that will help you manage your finances and avoid overspending.

Another important aspect of financial planning is establishing an emergency fund. This fund should ideally have at least six months' worth of living expenses to help you manage unexpected financial emergencies. An emergency fund can help you avoid getting into debt and reduce financial stress should there be any unexpected costs that arise.

Retirement planning is also a crucial aspect of financial planning for women getting divorced. According to the Office of National Statistics, women tend to live longer than men, with the average female living to 83.6 years and the average male living to 79.9. Therefore, with women living longer, it is key that they have sufficient retirement savings to support them throughout their retirement years. It is essential to review your retirement savings and make any necessary adjustments to ensure that you are on track to meet your retirement goals.

Women getting divorced also need to consider their insurance needs. For example, many couples will have joint life insurance policies and it is important to review these and make sure that they provide adequate cover for their future needs.

In short, women getting divorced should also consider seeking professional financial advice as well as legal advice.

Financial planning has never been more important for women getting divorced to ensure financial stability and security for their future. Women can take proactive steps to create a solid financial foundation by establishing a budget, creating an emergency fund, reviewing their retirement plans, and consider their insurance needs. By taking these steps, women can take control of their finances and secure their financial future after divorce.

To discuss your circumstances in confidence, please contact us to arrange a no-obligation meeting.