The Statistics: Why don’t more women consult a financial planner when they divorce?
By Marguerita Cheng, CFP®
Certified Financial Divorce Analyst, from her upcoming book, “Divorce Matters”
Financial stability is a top concern among women who divorce. Yet research finds that more than 95% of women do not consult a financial advisor when going through a divorce despite In my position on the board of directors of the Association of Divorce Financial Planners, I see the financial consequences a divorce can bring. With the effects lasting years – even decades – why are women not seeking financial advice from an expert?
The biggest problem 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 new study reveals that 61% of women said that they wish they would have known to use one. They believe that working with a Certified Divorce Financial Analyst (CDFA) would have been valuable and important to them and their attorneys.
There are two big ways that financial advisors can help.
- Take a Good Look at your Lifestyle: A financial advisor can help you think through your lifestyle to gain a better understanding of your expenses both before and after a divorce. This is especially important for women who haven’t been involved in paying the bills, managing investments, buying insurance, or budgeting.
- Uncover Hidden Gems: Financial advisors can also help you uncover critical financial assets that might not be on your radar. In our next chapter, we’ll offer insights into how you can find these hidden gems, which are crucial for making sure you get your fair share in a divorce. To give you a taste of what might be available to you, here are a few big-ticket items you may not have thought about looking for:
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- The marital home
- Engagement and wedding rings
- Fine jewelry
- Heirlooms and antiques
- Bank and retirement accounts
- College savings accounts
Divorcing Women Have Financial Goals
When it comes to financial goals that women have for the future, here are few more statistics you might find useful:
- 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
So what’s the next step?
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.
With women living longer, having a financial advisor by their side during divorce is crucial for long-term financial planning. However, according to a survey by Worthy, 72% of women who are divorced did not consider saving for retirement a top priority. This makes working with a financial advisor even more crucial when facing a divorce. A financial professional can help you overcome emotional turmoil to bring you the financial stability you deserve after divorce.
Now that you know the statistics, what should your next step be? Stay tuned for next month’s chapter as promised above: The Hidden Gems.
Questions? Always feel free to contact me via email.