A range of different events could have major impacts on a person’s future retirement. This includes a divorce. A divorce can raise many special issues that can touch on retirement and retirement planning.
Among the things that can impact how well-positioned a divorced person is to deal with these issues is what kinds of financial actions they take after their divorce. A recent survey looked at how individuals are doing when it comes to their post-divorce financial behavior. The survey’s respondents were CPA financial planners. The survey asked them various questions about the financial behavior of their clients in relation to divorce.
The survey results suggest that a fair number (three-fourths) of divorcing individuals of retirement age have less of an understanding of post-divorce financial management than they need.
The survey also pointed to there being a substantial gender difference when it comes to post-divorce financial behavior. Specifically, it found that women had a higher likelihood than men of engaging in certain types of positive financial conduct following a divorce, such as:
- Increasing their retirement saving.
- Improving their patterns and habits when it comes to spending.
- Pursuing a job.
- Pursuing financial advice.
What do you think accounts for this gender difference?
Now, whatever a person’s gender, what financial state they are in leading up to and during their retirement years can be very impactful. So, exercising appropriate care when it comes to post-divorce financial conduct that could have impacts on this state can be important for all divorcing individuals, regardless of gender.
Another thing that can be important for divorcing individuals of any gender is having proper guidance when dealing with financial matters in divorce proceedings, such as the division of assets. For, just as how a person acts after a divorce could have major impacts on things like retirement, so too can how they act during it. So, speaking with a divorce attorney about the legal issues in their divorce that touch on finances is something divorcing individuals, whatever their gender, may want to promptly do.
Source: Accounting Today, “Women are more likely to take positive financial steps after a divorce,” Michael Cohn, Feb. 9, 2017