For both men and women, some reports indicate that their standard of living is likely to drop after divorce. This is especially true for those who are 50 years old and older. According to one study, a woman’s standard of living could decline by 40 percent, while a man’s could decline by 21 percent.
There are two main reasons this tends to happen. First, many couples rely on two incomes during the marriage. When they divorce, each person must rely on a single income, which can make it difficult or impossible to maintain the same lifestyle.
Second, married couples often share many expenses, such as housing, utilities, health insurance and car payments. After a divorce, each person must cover these costs on their own. These expenses then take up a larger portion of each individual’s budget, which lowers their overall standard of living.
How can you plan for it?
Understanding that a drop in standard of living is common after divorce allows you to plan for it during the process. One important step is to make sure you fully understand your rights and legal options during property division. Receiving the share of marital assets you are entitled to can help preserve your financial stability.
In some situations, couples may also explore forms of support. For example, a stay-at-home parent who has not worked in many years may be eligible for spousal support, which can help maintain their standard of living while they re-enter the workforce.
Divorce can have major financial implications at any age. It is important for anyone going through this process to understand their rights and the legal steps available to address these challenges.