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Meeting the financial challenges of divorce

On Behalf of | Aug 16, 2017 | Divorce

When Kansas couples end their marriage and there is a significant income disparity between the two, this can mean the person with the lower income needs to make a financial plan for the future. More often, the lower-earning party is a woman because women’s incomes still lag behind men at around 82 cents to the dollar. There are a number of reasons for this, but one is that women tend to be more likely to take over care-giving duties for children or older relatives. This means that they may have to work fewer hours. In turn, they have fewer opportunities for career advancement and are less able to save money.

Another financial disadvantage of not being the breadwinner is that the lower earner may not be as familiar with household finances. This may leave that person feeling unprepared financially, but it is possible to make a plan with the assistance of a financial professional if necessary. This should take assets, expenses, income and goals into account.

People should consider making the plan without relying too heavily on spousal or child support payments since these are rarely permanent sources of income. People should also not delay in making the plan despite the upheaval of the divorce.

During property division, the higher-earning spouse may be concerned about giving up too many assets while the lower-earning spouse may be concerned about getting too little. Ideally, couples might be able to work together to reach an agreement regarding property division rather than taking the more adversarial approach of litigation. However, in some cases this is not always possible. Whatever approach to property division is used, people may want to discuss how best to achieve their goals with their attorneys.