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Effect of divorce on finances

On Behalf of | Aug 15, 2017 | Divorce

When Michigan couples get a divorce, their financial situation might change drastically. Although women work outside the home in growing numbers, there is still a significant gap in pay between men and women. The Bureau of Labor Statistics reports that women still earn about 82 cents for every dollar men earn. One reason for this disparity is that caregiving tasks tend to fall more to women, so they are less able to work longer hours, build their careers or save money.

Since they are usually not the breadwinners, women may also have less knowledge of household finances overall even if they are in charge of paying most of the bills. Therefore, one of the first tasks for women facing a divorce should be to get a handle on finances. It is important to keep in mind that finances will look different to those prior to the divorce when there may have been two incomes. Expenses, income, assets and long-term plans are all important to consider at this time. It is best to avoid being overly reliant on child or spousal support in these calculations since these payments are usually temporary.

It is important to not delay in making this financial plan. People who do not know much about finances might want to consult a professional or take a class.

During the stage of divorce in which property division is decided is another time that can be critical to a person’s financial future. Oakland County, Michigan divorce attorneys might be able to help a person create a plan for this part of the divorce process. For example, the person may want to think about what should be prioritized such as a retirement account. A couple might also be able to negotiate a plan that suits them better than one that might result from litigation.

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