In the past, studies indicated that women fared worse financially after a divorce. The phenomenon was dubbed the ‘divorce gap’ and perpetuated the myth that a woman was less likely to recoup financially after a marriage ended. Kentucky residents — whether male or female — who are facing a high asset divorce have several difficult decisions to make when working on a settlement agreement.
A recent study seems to suggest that divorced women are more likely to be homeowners. The implication is that these spouses elected to retain a family home during their divorce proceedings. Unfortunately, many professionals say that this is often a decision that women will regret as the cost of upkeep and taxes may strain their finances. Instead, it is advised that both spouses carefully consider dividing assets that will fund a comfortable retirement.
While the study conducted by Center for Retirement Research found that divorced women who have remained single are more likely to own a home and enjoy more financial security than never-married women, this may be due in part to the fact that they were in a better position to prepare financially during their divorce. Furthermore, homeowners may be better positioned for retirement since they already have a considerable asset and likely also have a significant amount of appreciation in the home at their disposal. Though single women have historically enjoyed higher incomes, the process of dividing assets may allow a spouse to obtain a portion of assets that boost their financial standing.
In the current economic climate, it is possible that either spouse may struggle financially after a marriage ends. Kentucky residents who wish to maintain a standard of living that will best meet their needs may be unsure of how to approach the division of their marital assets. In order for individuals to realize financial security after a high asset divorce, it may be prudent to consult with professionals who can provide the guidance they need to achieve the financial goals they desire.