For married individuals in Connecticut and across the United States, making a financial plan for divorce or widowhood may seem unpleasant or emotionally draining. However, the lack of this type of planning can leave people at risk of severe financial problems in case of the end of a marriage. In fact, one study indicated that a full 65 percent of married individuals do not have a financial plan for divorce or the death of their spouse.
Despite the low rate of planning, 72 percent of men and 62 percent of women expressed that they would be able to handle their finances if one of those events took place. While confidence is important, planning is critical for financial concerns. Approximately four out of every 10 marriages end in divorce, and one-quarter of Americans over 65 are widowed. The study showed that married individuals reported higher annual personal income than both divorced and widowed people.
Researchers and financial planners noted that advance planning could help to protect the financial security of married individuals should they experience divorce or widowhood, noting that this type of planning is part of financial protection. Planners compared it to long-term care planning or disability care insurance. Divorce and widowhood do have a significant impact on financial health as 20 percent fewer divorced Americans felt financially secure in comparison to married people, and they were substantially less likely to be able to save.
Whether planning for a future divorce or dealing with one on the horizon, financial planning can be an important part of dealing with the end of a marriage. The long-term financial aspects of divorce are particularly important for individuals ending their marriage, particularly those with high levels of assets. A family law attorney can work with financial planners and other experts to help protect their clients’ interests and develop a plan for the future.