Divorce, with all its difficulties and emotional strain, is also a difficult financial decision. It is estimated that one couple gets divorced in the US every twenty seconds. This translates into a significant exchange and settlement of financial assets.
When a couple gets divorced, both of them want to ensure they get what they are entitled to. They envision a fair settlement where the people involved part ways amicably but fairly and that once the assets and income is divided, each spouse is able to sustain the living standard they are accustomed to.
Divorce means maintaining two residences, giving up on the economies of shared living and ensuring the standard of living before and after divorce is not drastically different.
Who gets the house? How much child support is fair? How do the calculations work when both spouses have an income? If the couple decide to split the house and assets, how does this affect the alimony payment? If only the husband works, how much will have to pay in alimony? If the mother gets sole custody, how much child support is she entitled to? What about future taxes? Social Security Benefits? Lots of questions and lots of factors to consider when working toward a fair settlement.
It is a fact that in most divorce settlements, financial hardships arise for both spouses but usually, it’s the woman (in most cases, now-single mother) has to face more challenges with a lower standard of living – reduced income and increased expenses. According to statistics, “women’s disposable income falls on average nearly 30 percent and that four times as many divorced single mothers live below the poverty line compared to their married counterparts.”
This is not to say that the financial effects of divorce are a bed of roses for the husband. For a man whose ex-wife does not work, he has to give child support and alimony and his income has to support both his wife and his children’s expenses. This can be quite challenging and can also affect his standard of living because his expenses are sure to increase.
However, the one advantage that a large number of men hold over women is their career. While they may be splitting everything equally and may also have to commit to child support payments, the one thing that they do not have to lose is their career (which a lot of stay-at-home moms) and housewives cannot claim to have. Getting back to the workforce can be a challenge, especially after a split and with kids. This is why women end up facing more hardships after divorce and have fewer resources to be able to retain the same quality of life that they enjoyed before divorce.