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How women are financially impacted by divorce

On Behalf of | Nov 6, 2023 | Divorce |

No Wisconsin couple enters into a marriage thinking their relationship will eventually end. Unfortunately, the divorce rate is high in the country; people can change and things can happen that chip away at a marriage. Women are particularly impacted by divorce in certain ways financially. These are a few examples.

Decrease in household income

One of the most notable issues women face after they divorce is a decrease in household income. Along with the hit to the financial stability once enjoyed during their marriage, women may find it difficult to maintain their homes. As a result, it’s normal to have to find housing that accommodates their new financial situation and sometimes run into issues. For example, downsizing is normal after divorce, but for some women, this might be significant such as moving from a house to a one-bedroom apartment.

Decrease in credit score

After a divorce, many women find that their credit scores have taken a significant hit. This is more likely to happen if one party had marital debt and didn’t pay it off or missed a payment on joint accounts.

Loss of insurance

Many married women opt into their spouse’s health insurance plan. After a divorce, this is no longer an option; if a woman is unemployed or only works part-time, it means having to search for a new plan on their own. However, even when employed full-time, obtaining coverage may be expensive.

Women are also usually beneficiaries of their husbands’ life insurance. However, once a couple divorces, this is no longer the case as their former spouse removes them from the policy.

Trouble supporting children

After a divorce, many mothers have custody of their children. This leaves some scrambling to make ends meet while providing a roof over the kids’ heads, feeding them and paying various bills. However, this usually happens when a woman’s former spouse fails to pay child support or doesn’t pay the full amount as ordered by the court.

Divorce often affects people financially, especially women. Taking steps ahead of time may help minimize those impacts.