Financial literacy and dealing with divorce

On Behalf of | May 26, 2020 | Family Law |

Women in Tennessee may be particularly financially vulnerable in a divorce when compared to men. According to one global study, over half of women said they defer to their husbands when it comes to financial management. This can leave many of them unprepared to manage their own finances effectively after divorce. It can also leave them uncertain of how to protect themselves during the divorce itself.

Compounding the difficulty is the fact that the stress of divorce can affect people’s decision-making. Women in this situation may want to work with a divorce financial planner who is familiar with both the money issues and the emotional states that often accompany divorce. It is important for women who earned substantially less than their spouse to keep in mind that while money from the divorce settlement and spousal support may help them financially for a time, they will need to also be prepared to use their own resources and talents to earn money eventually.

One challenge women might face after a divorce is having assets that are difficult to liquidate, such as a home and investments. If this is the situation, they may want to discuss how they might use a home equity loan or some other means to get access to more liquidity. They might also want to discuss the possibility of expanding their financial literacy with a financial advisor.

Any spouse in a marriage who did not work outside the home or who made significantly less money than the other spouse might be concerned about property division and the divorce settlement. They may want to talk to an attorney about protecting their financial interests during negotiation or litigation. Making a plan ahead of time about acceptable scenarios for property division can help a person avoid poor decision-making driven by emotion.