Mellody Hobson: What Women Need to Know About Divorce and Their Finances
Jan. 16, 2007 — -- Women need to be financially prepared before a marriage has the chance to go sour. That means being aware of your family's financial situation and being responsible for your personal long-term financial outlook, including retirement.
Too many women learn the financial lessons of divorce the hard way. Women face different financial challenges than men.
They still make only about 76 cents for every dollar men do, and they are more likely to take time off during their careers to raise children. Furthermore, women invest less aggressively than men do.
Women also live an average of seven years longer than men, and often don't have the savings to sustain them during this period. All of these factors add up to a tenuous financial position for women.
Women need to be aware of their joint finances.
Even if you are not the designated organizer of your family's finances, you can't bury your head in the sand.
Be aware of the big financial picture and informed about your family's finances. Be especially aware of any activity on joint accounts.
How much do you owe? What is the family's overall income and what are its expenditures? This isn't preparing for a divorce -- it's being informed and responsible.
If you are newly married, now is the time to set the standard. Let your husband know you want to be an equal partner, keep the lines of communication open and talk about your finances. Miscommunication and secrets can lead to nasty surprises later on.
Who suffers more financially in a divorce, men or women?
The truth is that everyone suffers. Divorce is expensive -- not because of legal fees and unfair ex-spouses -- but because it essentially splits a family in half.
Where there was once just a single set of expenses, now there are two. That said, women often experience greater hardship because they have custody of the children, their incomes are usually less than their ex-spouse's and they may have accepted a meager financial settlement from the divorce.
Women are too quick to give up their financial identity in a marriage.
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