When couples decide to divorce, the resulting legal proceedings, coupled with the division of marital assets, are often overwhelming for each party. However, women have a more difficult time recovering financially.
CNBC News reports that while wage gaps often cause this issue, divorcing women who spent many of their married years raising children instead of working may also find life after divorce financially stressful, and there are several other reasons why they might struggle more than their male counterparts.
Grey divorce affects women more
Women over the age of 65 who experience divorce likely make less yearly than their husbands, with gaps as wide as nearly $3,000 in some cases. As a result, many older divorcing women may have a more difficult time with their living wage once the divorce completes. A careful review of marital assets may give these divorcees a better financial quality of life later on, especially if their state of residence allows for the gain of additional assets depending on certain circumstances.
Unequal earning power
Some divorcing women, no matter their age, may have reduced earning power compared to their ex-spouses, especially if they put their careers on hold to raise a family. Fewer educational opportunities may also come into play, as childcare costs may not have fit into the household budget. After a divorce, some women who never got the chance to earn a degree may find their employment opportunities limited, which may cause them to struggle financially after a divorce.
Women can protect their financial futures by remaining involved in the family finances over the course of a marriage and protecting retirement accounts and non-marital assets during a divorce.