STUDY SHOWS POVERTY, HOMELESSNESS
A POTENTIAL AFTER DIVORCE
As 2012 approaches, the baby boomers era is increasing. Many are reaching their 60s and, unfortunately, entering their later years as divorcees. A recent study reveals that divorce is causing women in this demographic financial distress and many with an increased risk of entering poverty or even becoming homelessness post-divorce. The study highlights the importance of preparing, researching and consulting with an experience divorce attorney before the process begins to mitigate these potentials.
A study supported by the Salvation Army evaluated the financial standing of over 100 single divorced women from the baby boomer era and concluded that there was a high potential for these women to enter poverty or even become homeless.
Out of the 111 divorced women in this study:
- 77 percent of the woman became renters even though 79 percent carried advanced educational degrees
- Women who made over $70,000 only had a small amount of savings
- Women overall had low monetary levels for retirement
- 58 percent of the women reported having less than $100,000 saved at the time of retirement
Divorce Forces Financial Changes
Couples working together can make financial decisions together that affect their current and future well-being. However, when they get divorced, the couple’s financial situation automatically changes; no longer are they relying on dual incomes to pay bills and save for retirement. According to the study, women, in particular, are seemingly affected the most.
For instance, many women from the baby boomer generation worked part-time or took on the responsibility to instead care for the home and children while the husband took on the responsibility to make a living outside the home. Both parties equally shared in the responsibilities that accompany life. However, once divorced, many women found it hard to afford a home by themselves, pay off once manageable debt, or save up for adequate retirement. Essentially, their financial footing became jeopardized.
Seeking the Help of a Divorce Lawyer
No couple plans for or expects to get a divorce, but it does happen. If the time comes, it’s important to seek help to prevent or mitigate the potential for financial hardship. Consulting with an experienced divorce attorney who can help you come up with a plan to ensure financial stability after your divorce is recommended.