Going through a divorce can be a stressful, contentious experience even under the best of…
Many people in Kansas who get a divorce might not have a financial plan in place to deal with this event. A survey conducted for TD Ameritrade by Head Solutions Group found that about two-thirds of people who were married had not planned for widowhood or divorce despite divorce ending around 4 in 10 marriages. Most respondents, 72 percent of men and 62 percent of women, said they were confident they would be able to handle these situations financially.
However, statistics show a lower income and more financial anxiety among divorced people. Married people make around $9,800 more annually than divorced people. Most married people, 52 percent, said they expected financial security during retirement while only 30 percent of divorced people did. Divorced people did not feel financially stable in the present either with only 25 percent reporting a feeling of financial security compared to 43 percent of married people.
Almost one-third of married people said they did not save or invest any take-home pay, but 47 percent of divorced people said the same. Nearly half of divorced people said they were worried they would run out of money after retirement. In comparison, this was a concern for 38 percent of married people.
A drop in the standard of living is not unusual for some people after divorce, and in some cases, people may slip into poverty. Maintaining a single household can be more expensive than sharing one with a spouse. For this reason, people should consider how to protect themselves during negotiations over property division in divorce. While it might be tempting to rush through the process in order to get it over with, doing so can have serious financial ramifications. People going into divorce negotiations might want to talk about how to increase the likelihood of financial security with an attorney.