This episode focuses on money matters related to divorce and how to move forward after a separation.
Women often face complicated financial dynamics—earning, saving, and spending money can be particularly challenging during and after a divorce. Statistics show that women's household income typically declines by an average of 41% post-divorce. This drop is often linked to historical wage gaps and the tendency for women to not claim their share of retirement accounts during the split, which can leave them financially vulnerable. Almost one-third of recently divorced women report difficulties in making ends meet, especially considering that women generally live five years longer than men, amplifying the long-term financial impact.
In 2022, it was anticipated that 44% of marriages would end in divorce, fluctuating between 40% and 50% in recent years. Notably, the trend of “gray divorce” is on the rise, with divorce rates for individuals over 50 doubling since 1990, and tripling for those over 65.
Divorce is challenging, even when desired; research indicates that women initiate 69% of all divorces. Regardless of the circumstances, it's not a situation anyone wishes to face.
If you're contemplating or experiencing a divorce, we're here to provide insights on what to expect and strategic steps to achieve financial independence moving forward. Kimberlee Davis, a Certified Divorce Financial Analyst and Managing Director at a bi-coastal wealth management firm, joins us. She specializes in guiding women through financial transitions following significant life changes such as divorce.
Kimberlee shares her personal experience with divorce—highlighting the importance of financial planning and awareness. We discuss how to be proactive and informed about your finances, emphasizing the significance of asking the right questions.
We also touch on essential professionals to have on your team during this time, including financial advisors, divorce attorneys, and accountants, and how their support can be invaluable. Additionally, we explore various financial arrangements, such as who retains the house versus the business, and how to approach these decisions thoughtfully.
Kimberlee offers practical advice on managing accounts—should you open separate checking, savings, and credit accounts while closing any joint ones? We also examine credit reports, retirement accounts, joint debts, and assets.
In our Mailbag segment, we tackle a listener's question about real estate decisions amid climate change and discuss the implications of marriage on college financial aid. Finally, we provide tips on how to approach your manager for a raise during challenging times.
