Financial Steps to Take Post-Divorce

 Posted on December 12, 2014 in Divorce

When a person goes through a high-asset divorce, there are always adjustments that will need to be made—both personally and financially. This can be particularly true if one spouse was the primary or sole breadwinner in the family and the majority of the couple's income came from that spouse's earnings.

Traditionally, it is the wife who may be hardest hit financially after a high-asset divorce. Statistics from the U.S. Bureau of Labor Statistics reveal that women only earn 77 cents to every dollar that is earned by men. After divorce, according to the U.S. Census Bureau, a woman's income decreases by almost 40 percent. This can exacerbate an already stressful economic situation.

Women also traditionally have less money in their retirement accounts. Men, on average, have at least 60 percent more funds in their contributed funds than women do. This fact again stresses the need for a skilled legal negotiator during a high-asset divorce.

However, there are several steps a lesser-earning spouse can take to help ensure a financial safety net. To begin, it is important to try to have a year's worth of living expenses saved away in an easily accessible account and earmark it only for emergencies. This way, when emergencies arise, you do not have to tap into investment accounts to pay the bills.

Also, you should also try to contribute as much as you can to your own retirement account, even if you will be receiving a portion of your spouse's retirement. As one financial advisor points out, you can never have too much money saved for retirement.

Additionally, post-divorce is an important time to re-examine your investment portfolio to make sure that it is still right for your new living situation and whether or not the risk factor of your current investments is still appropriate.

If you are considering filing for a high-asset divorce, there are several additional issues that need to be addressed to ensure your future. However, an attorney can help. Contact an aggressive Leander complex divorce attorney today to discuss your options.