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Article appearing on money section of popular unisex website (bet most of the readers are female though)
Saving and spending
You are here: ninemsn > Money > Saving and spending >
Savings articles
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Key points
A guide to the financial impact of divorce
Women have a larger drop in disposable income that men
It may be worth setting up a pre-nuptial agreement
Women should maintain personal savings and credit records through out their marriage
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The high cost of divorce
From Money Magazine, July 2005
Divorce can mean the end of financial security, so with the rate of break-ups hitting 48 percent, Nicola Field, in July's Money, has compiled a guide to what to expect and how to cope. Women are invariably harder hit, with a massive 43 percent average drop in income — from about $50,000 when first married to $28,900 one year after the split.
Offsetting this can be the fact that women with custody of children can receive a bigger stake of the family home, cash and furniture. But they can also expect a smaller proportion of other investments and there may be a lot still owing on the home.
Newly divorced men face a relatively small drop in disposable income but can expect costs associated with seeing their children (phone and fuel bills) and changes to their new home to accommodate overnight visits. They can also struggle to get back into the property market. The property settlement can be a big drain on both parties. An amicable deal can cost $2000 each in legal fees, but if there's a fight, legal bills can swallow the entire assets.
How to recover from all this? Take stock of your situation; set child-support payments; apply for all relevant benefits; make a budget; cancel all joint credit cards and bank accounts to avoid taking on your ex's debts; get up to speed on financial skills; protect any lump-sum settlement; update your will; ensure you have health, property, car and income insurance.
Before the event, it may be worth thinking about a pre-nuptial agreement, which can help preserve your wealth if the marriage fails. But a better plan, especially for women, would be to focus on your own financial security by maintaining personal savings and credit records with at least one bank account, and credit card, in your name.
- Is it just me, or is that female biased. First, I imagine that the reduction of income in females would likely be explained by moving from full time work to part time work or not working but having income producing assets moved out of the wife's name etc.
Point: That figure and paragraph distorts the impact of divorce on a woman's income as divorce does not affect their ability to produce income but THEIR CHOICES after divorce does
- as for pre-nuptial agreements in AUS, a major weakness is that they cover assets brought into the marriage, not what is earnt during the marriage.
eg.
pre marriage
woman works and has house
man has nothing finishing studies
during marriage
woman becomes housewife
man becomes high powered senior professional earning $200k per year
post marriage
pre nup means
woman gets house, man has nothing
asset allocation means everything man earnt during marriage is split between the two parties.
Crazy. How could the man have protected himself except by being 'dubious' and putting some of his earnings in private storage.
Saving and spending
You are here: ninemsn > Money > Saving and spending >
Savings articles
A A A
Key points
A guide to the financial impact of divorce
Women have a larger drop in disposable income that men
It may be worth setting up a pre-nuptial agreement
Women should maintain personal savings and credit records through out their marriage
The most expensive addictions
Love hurts: what it costs to be pregnant
Do you hate your job?
It pays to look after yourself
How to work with CEO's that want to change the world
The world's most powerful women
The high cost of divorce
From Money Magazine, July 2005
Divorce can mean the end of financial security, so with the rate of break-ups hitting 48 percent, Nicola Field, in July's Money, has compiled a guide to what to expect and how to cope. Women are invariably harder hit, with a massive 43 percent average drop in income — from about $50,000 when first married to $28,900 one year after the split.
Offsetting this can be the fact that women with custody of children can receive a bigger stake of the family home, cash and furniture. But they can also expect a smaller proportion of other investments and there may be a lot still owing on the home.
Newly divorced men face a relatively small drop in disposable income but can expect costs associated with seeing their children (phone and fuel bills) and changes to their new home to accommodate overnight visits. They can also struggle to get back into the property market. The property settlement can be a big drain on both parties. An amicable deal can cost $2000 each in legal fees, but if there's a fight, legal bills can swallow the entire assets.
How to recover from all this? Take stock of your situation; set child-support payments; apply for all relevant benefits; make a budget; cancel all joint credit cards and bank accounts to avoid taking on your ex's debts; get up to speed on financial skills; protect any lump-sum settlement; update your will; ensure you have health, property, car and income insurance.
Before the event, it may be worth thinking about a pre-nuptial agreement, which can help preserve your wealth if the marriage fails. But a better plan, especially for women, would be to focus on your own financial security by maintaining personal savings and credit records with at least one bank account, and credit card, in your name.
- Is it just me, or is that female biased. First, I imagine that the reduction of income in females would likely be explained by moving from full time work to part time work or not working but having income producing assets moved out of the wife's name etc.
Point: That figure and paragraph distorts the impact of divorce on a woman's income as divorce does not affect their ability to produce income but THEIR CHOICES after divorce does
- as for pre-nuptial agreements in AUS, a major weakness is that they cover assets brought into the marriage, not what is earnt during the marriage.
eg.
pre marriage
woman works and has house
man has nothing finishing studies
during marriage
woman becomes housewife
man becomes high powered senior professional earning $200k per year
post marriage
pre nup means
woman gets house, man has nothing
asset allocation means everything man earnt during marriage is split between the two parties.
Crazy. How could the man have protected himself except by being 'dubious' and putting some of his earnings in private storage.
