Two studies published in the last few years have delved deeper into the impact divorce has on women at or around retirement age. The researchers’ findings weren’t all that promising.
One of the studies published by CNBC suggests that divorce has a significant adverse impact on women’s retirement savings. The other, published in the magazine Worthy, highlighted some of the reasons behind these adverse financial outcomes.
What the researchers found about the impact of divorce
The CNBC study mentioned above involved an analysis of data collected by the Center for Retirement Research. It showed that women 65 and over often suffered when their household income diminished from as much as $67,404 to $35,736 post-divorce. The study highlighted how women didn’t often take time to adjust their lifestyles to adapt to their new single income, thus eating away at their retirement savings more quickly than it should have diminished.
A Worthy study polled nearly 1,800 women 55 and over. An estimated 46% noted that the divorce had left them with financial woes. Many discussed how they wish they’d been more involved in managing their household’s finances. Many also expressed that what surprised them most about getting divorced was how little, if any, spousal maintenance they were entitled to.
What women can do to minimize their divorce’s financial impact
The CNBC study highlighted the importance of women being more involved in their household finances and seeing a financial planner as they prepare or amid their divorce. Women can reframe their budgeting and also learn about high-risk, high-yield investment accounts that may help them recoup some of their financial losses.
Another equally effective strategy is carefully negotiating a property division settlement in your divorce. Minnesota is an equitable distribution state so that you can demand a fair settlement. It can be helpful to know what a judge is looking to see when reviewing your settlement agreement and have an argument prepared if they have any questions about it in court.