How Independent Women Can Maximize Their Financial Outlook After Divorce

Article Summary

• Data indicates that the quality of life for women decreases more substantially than for men following divorce.
• If the financial aspect of a divorce is navigated with expertise and strategy, women can ensure that they benefit from certain advantages, including a fair distribution of assets and a court-ordered split of retirement benefits.
• Women navigating a divorce should consult with a financial advisor during the divorce process to ensure that assets are being divided equally and any short and long-term financial questions are addressed as soon as possible.
  

Divorce inevitably comes with financial adjustments. And in some cases, those adjustments can start to resemble consequences, particularly for women. 

As the divorce rate among couples over the age of 50 has climbed in recent years, a phenomenon known as “gray divorce,” the financial implications of a divorce later in life have become more profound. In many cases, the financial stakes are even higher, as joint investments have matured over the years, real estate has gained value, and the individuals within the marriage are nearing retirement. 

Women face specific challenges, especially if they put a career on hold to raise a family. Wage gaps and a slower career trajectory are two other factors that women in particular often need to navigate. Data indicates that a woman’s standard of living, on average, drops more significantly after a divorce when compared to that of men.

Although the potential for financial obstacles exist for women as they go through a divorce and begin a new life independent of their spouse, the negative financial impacts may be easier to navigate if they are approached in a strategic way. It is for these reasons and more, specific to women managing their individual financial lives, that Svvy® exists. 

Women have different needs than men, approach finances differently than men and value aspects of professional relationships differently than men while being no less invested in their financial futures. At Svvy®, we’re committed to empowering women in their financial journeys, and to do that, we start by connecting women with the financial experts that are best suited for their individual needs.

Navigating divorce is one of those very specific individual needs.

Gray Divorce Financial Planning

Although the financial fallout of a divorce can seem overwhelming, especially when it comes to financial planning over 50, understanding the landscape makes it a little easier to digest. Knowing what you know and what you don’t know, helps.

Svvy® clients who have been matched with a reputable, trustworthy, and female-vetted financial advisor have candid conversations about their financial footing that may begin to provide answers to some of the unknowns. Working with real numbers and data-backed forecasts can take the sting out of a financial future that suddenly seems less clear. 

Advisors matched with clients through Svvy® help women set financial goals post-divorce in a number of ways. Depending on each individual circumstance, advisors may consult on common issues such as the strategic division of marital assets, including individual retirement accounts (IRAs), annuities, trusts, pensions and 401(k) accounts. In some cases, the implementation of a Qualified Domestic Relations Order (QDRO), which involves the court-ordered division of a retirement fund between spouses, may be relevant. 

Each type of retirement fund comes with different tax implications or early withdrawal penalties, and qualified financial advisors speak that language. The financial advisors that Svvy® matches with clients have experience understanding the specific pitfalls for women as they are rebuilding their finances after divorce.

In addition to retirement funds, financial planning for divorced women often includes discussions that center on an evaluation of Social Security accounts, adjustments to retirement timelines and contribution strategies if needed, and the establishment of new financial goals as a new future emerges. 

Long-Term Financial Planning For Women

Financial stability, both short-term and long-term, after divorce is a real concern for women, especially because they face a number of challenges unique to their gender. Working with a financial advisor who understands those obstacles makes the journey of rebuilding wealth less stressful and more palatable. 

The financial experts that clients are matched with through the Svvy® platform can assist with fund allocation and money management, and can also model retirement scenarios, which allows clients to adjust their goals in an informed way and ultimately realize financial independence. 

If you’re navigating a divorce and are looking for the expertise of a financial advisor who specializes in working with women facing similar financial situations, Svvy® will match you with an expert to meet your specific needs. 

If you would like to be connected with a female-vetted expert, learn more about Svvy’s matching process, or learn how you can start taking control of your financial future, get matched with a Svvy® expert today. 

Disclosure: This content is provided for general educational purposes only and does not constitute individualized investment, legal, or tax advice. Svvy® acts solely as a solicitor and connects and matches individuals with independent third-party financial professionals through a quiz-based matching process on the Svvy® Network. Matching is based on information provided through Svvy’s platform and does not constitute any advice. Any advice, recommendations, and services are provided only by the independent professional you choose to engage.