Financial stability is a top concern for women who divorce, but a recent study uncovers that over 95% of women do not use a financial advisor during the divorce process despite having financial goals they want to achieve. As Certified Divorce Financial Analysts (CDFA) at Northstar Financial Planning, we see firsthand the financial consequences of divorce when women aren’t prepared. With the effects lasting years – even decades – why are women not seeking financial advice from an expert?
The biggest issue is a lack of awareness. Most women don't know how a financial advisor can benefit them early on in the divorce process. Only 5% of women in a recent survey knew about using a financial advisor as part of their divorce team. However, among the financial revelations from divorced women, a recent study reveals that many women said that they wish they would have known to use one.
How Financial Advisors Can Help During Divorce
- Understanding your current financial situation.
A financial advisor can help you understand your financial situation, both before and after a divorce. This is especially important for women who haven't been involved in paying bills, managing investments, buying insurance, or budgeting. In their spouse’s absence, they are now in charge of all these tasks.
During a marriage, one in five women admits to handing over control of money to their husbands, but they must play an active role in their finances after divorce. Many women struggle to maintain the same lifestyle they had during the marriage, and a financial advisor can help you see the future more clearly to guide you when separating monetary accounts and other assets.
- Locating valuable assets including your home, engagement ring, and fine jewelry.
Financial advisors can also help you uncover critical financial assets that might not be on your radar. These hidden gems are crucial for making sure your assets are split equitably in a divorce. A few big-ticket items you may not have thought about include the marital home, engagement and wedding rings, fine jewelry, and heirlooms and antiques.
The marital home is an important consideration. Not only is there often valuable equity in a house, but you and your children, if you have any, will need a place to live after the divorce.
An engagement ring is often very valuable but is usually put aside post-divorce, unused, unworn, and forgotten.
Heirlooms and antiques that are passed down from generation to generation through family members can also hold significant value.
Divorcing Women Have Financial Goals
When it comes to financial goals that women have for the future:
- 66% hope to pay off debt
- 41% want to save for a comfortable retirement
- 38% would like to have an emergency fund
- 27% aspire to purchase a new home
- 20% are striving to create new streams of income ·
- 19% are hoping to build their wealth through investments
While it's clear women who divorce have financial goals, many don't have a clear path on how to achieve them. Financial advisors can play a significant role when dividing marital assets during the divorce process. A CDFA professional can put you in the best position possible to help you achieve your financial goals post-divorce.
Working Through Emotional Turmoil with Your Financial Advisor
According to the Worthy survey, most women who are divorced did not consider saving for retirement a top priority. This is often due to the emotional turmoil caused by the divorce process. Unfortunately, though, this also means that many women are putting their future financial security at risk.
Beyond the numbers and cents of the divorce, a CDFA can help you make sense of your loss and work through your grief. They’ll help you overcome the emotional turmoil holding you back to bring you the financial stability you deserve.
Divorce is a challenging and emotional process, but it's essential to have a solid financial plan to ensure a stable future. Seeking guidance from a financial advisor can make all the difference when it comes to achieving financial stability and long-term financial goals. Don't let a lack of awareness or fear prevent you from seeking the financial advice you need during this challenging time.
At Northstar Financial Planning, we have an all-female team of experienced financial advisors who specialize in divorce planning and can help you navigate the process with confidence. Schedule your Get Acquainted meeting to learn more about how we can help you achieve financial stability and security post-divorce.