Married people in Minnesota may wish to avoid thinking about the idea of divorce or widowhood, even when it comes to financial planning. However, making a plan for these occasions can be extremely important for anyone’s financial health as a lack of planning can leave people at risk of a real financial crisis with the loss of a partner or the end of a marriage. Nevertheless, the lack of planning is widespread; according to a study, 65 percent of married Americans don’t have a plan for their finances in case of divorce or the death of their partner.
Despite the lack of planning, many Americans are confident in their ability to handle the financial challenges of sudden singledom; 72 percent of men and 62 percent of women said that they expected to be able to handle their financial situation. However, studies show that there are measurable financial impacts caused by divorce or widowhood, and given the frequency of these situations, planning can be very important to avoid pitfalls. Around 40 percent of marriages end in a divorce, and 25 percent of people over 65 years old are widowed. Married people reported higher personal income each year in comparison to both divorced and widowed people.
Financial health can be deeply impacted by divorce, so planning for it can be compared to insurance for the future. In one study, divorced Americans were 20 percent less likely to feel financially secure than married people and much less likely to have money to save for the future. A full 47 percent of divorced people did not have sufficient funds to be able to save.
When divorce is at hand, dealing with the financial and practical aspects of the end of a marriage can be just as important as the emotional ones. A family law attorney may provide representation and protect the interests of a person in a divorce in matters including child custody, spousal support, asset division and other concerns that can have a serious impact on both parties’ financial future.