On behalf of Stange Law Firm, PC posted in Family Law on Wednesday, June 20, 2018.
Minnesota residents who get a divorce should be aware that the process can have a negative impact on their finances. Individuals who have been divorced have a higher chance of depleting their assets during retirement than people who have not been divorced. According to a study conducted by the Center for Retirement Research, households that have not undergone a divorce have a net financial wealth 30 percent higher than similar households that have been through a divorce.
The results of the study also indicate that going through a divorce gives an individual a 5 percent higher risk of running out of assets during retirement. However, this does not apply to single women.
Single women who have gone through a divorce have the same level of retirement readiness as women who have not been married. The reason single women are not prone to the same trend as other groups, such as married couples and single men, is real estate.
After a divorce, single women generally have the children and the home, which can be a source of home equity. Using the equity that accumulates can boost their financial security.
It is worth noting that financial planners have been advising women who are getting divorced that they should get rid of the home. Factors such as the expenses related to the maintenance of the home, mortgage, property taxes, repairs, utilities and landscaping are taken into account with the state of the women’s finances after the divorce when making the recommendation.
A family law attorney may assist clients with resolving disputes regarding family law matters, such as property division during a divorce, prenuptial agreements or post-divorce modifications. The attorney may engage in litigation or negotiation to obtain the desired settlement terms for clients.