Divorcing at or near retirement creates additional risk to women’s financial security. The statistics indicate that after divorce an average woman’s standard of living drops by 45% as compared to 21% for an average man. According to this article, there are several reasons that may explain this gap including losing employer- based health coverage, reduced social security benefits because of a shorter work history and unfavorable division of marital assets whereby the wife may give up retirement assets to keep the marital home.
To improve your post-divorce finances, there are steps to take both before and during the divorce. This includes the obvious ones like removing your soon to be ex-spouse from your credit cards, deciding whether to sell the martial home, and creating a budget that reflects your future lifestyle. In addition, you should keep in mind how you will split any marital debt and future college expenses. This article provides some useful tips.
Whether it is the main asset or part of a large portfolio of assets, the marital home’s future will be part of the negotiations during the divorce process. The wife or husband may want to live in the home until the children finish school but that may require compromise and/or sacrifice if there are limited assets. Here are some factors to consider when deciding what to do with the marital home during a divorce.