There are going to be financial changes in your life after divorce. Your standard of living is going to shift. For many couples, this is because they are used to having two incomes, but they have to learn how to pay the bills on one income. They still have many of the same costs – such as housing, utilities or insurance – but there is less money to go around.
Will your standard of living go up or down? Much of it depends on your gender. Some studies claim that men actually see their standard of living increase by as much as 10% after divorce. Women, on the other hand, will often see roughly a 30% drop. These are averages, of course, and every relationship is going to be unique. But it is worth considering so that you can prepare in advance.
How should you address this change?
During the divorce, you want to address this by working to secure the assets that you deserve. Marital assets can include bank accounts, investments, retirement accounts, life insurance policies, business ownership, real estate ownership and even a commingled inheritance. Be sure that you don’t leave any valuable assets on the table if you’re really going to need them after the divorce.
The next thing to do is consider making a post-divorce budget. People who try to maintain their standard of living and their same budget often run into financial stress. But you may be able to adjust your budget in a few key ways to make the transition go more smoothly.
As you can see, the financial side of a divorce is incredibly important. It pays to know what legal options you have during this process.