As you move toward divorce, someone mentions to you that your standard of living is going to change. That’s true, as you and your spouse both work and you live on two incomes.
What’s interesting is that, while you assumed your standard of living would drop with this income reduction post-divorce, they tell you that it’s probably going to go up. Are they right, or is this just a misconception?
How your financial situation changes after divorce often depends on your gender
Some studies indicate that it really all depends on your gender. Your standard of living definitely will change, but it tends to go in opposite directions for men and women.
The study noted that men see their standard of living increase, and it could go up by more than 30%. On the other side, women see a notable decline of about 20%. Additionally, women are about three times as likely to live in poverty after divorce, compared to men. Their poverty rate is about 27%.
What this really helps to show is the wage gap. Since men tend to earn more money than women, divorce is a bigger financial downside for women. Even if she’s in the workforce and has been the entire time, she is just statistically more likely to earn less than her husband, so she’s losing more of her income and buying power in the divorce than he is likely to lose.
Protecting your financial future in a divorce may take help
No matter which side of this equation you fall on, it’s clear that there are some real financial concerns to consider during a divorce. Be sure you know exactly what steps to take to protect your interests and your future.