Financial confidence might feel out of reach, especially for those who have decided to end their marriages. Whether navigating property division or seeking spousal support, there are a number of places where money matters can go astray. However, there is evidence that many women in Mississippi and elsewhere experience newfound financial confidence after going through divorce.
Around 1 million women in America get divorced each and every year. According to an Allianz Life 2019 study, 57% of divorced women say that ending their marriages was a wakeup call to get their personal finances in order. This wakeup call seems to be pushing women to better financial positions than before.
Reaching out for the right help
In 2016, only around half of divorced women reported that they felt financially secure. By 2019, that number had jumped to 65%. Divorced women also felt more confident in their earning power in 2019 than they did in 2016.
So why the significant jump in financial confidence? Divorced women are relying on help from financial professionals more than ever before. Going back to the same Allianz Life survey, 88% of women were getting help from financial professionals after divorce, compared with only 61% in 2016.
If you were not actively involved in your household’s finances before divorce, you might be scared about what the future holds for you. However, studies show that you probably will not feel this way forever. Most women tend to feel more and more confident in their finances as time goes on, with many women reporting that their finances improved in the years following their divorces.
Ten years seems to be the sweet spot. When asked about money confidence and whether they have a solid understanding of their financial planning and investing, only around half of women who have been divorced for more than ten years reported wishing they knew more. A little over 70% of women who have been divorced for fewer than ten years responded that they wish they knew more about these topics.
What about future plans?
Divorce changes a lot of things. For some women, the idea of having to alter retirement and other financial plans can be understandably overwhelming. This is on top of other significant changes that divorce can bring on, such as:
- Finding new health insurance coverage
- Navigating property division
- Changes to your taxes
Minimizing divorce’s financial impact on your life often means taking a proactive stance. Collecting all relevant financial documents, calculating your future housing costs and looking into spousal support are all smart steps you can take toward your future financial security.