Newsome O'Donnell, LLC
We Listen. We Think. We Find Solutions. 973-692-6317

Lack of financial knowledge could lead to surprises in divorce

Statistics show that older couples are now twice as likely to divorce as they were in the 1990s. Unfortunately, this may present particular financial challenges for some seniors in New Jersey. In particular, women appear to be disproportionately more likely to lack a knowledge of household finances. A "gray divorce" can lead to unpleasant post-divorce surprises, such as learning about secret debts.

A UBS Global Wealth Management study found that 56 percent of wives said they let their husbands make major decisions about finances and investments. This seems to cut across generations as 61 percent of Millennial women and 54 percent of Baby Boomer women said their husbands make these decisions. Furthermore, nearly 70 percent of men and over half of women with children younger than 21 said they would not have an issue with their daughter's future spouse managing finances for both of them.

However, women who are widowed and divorced advise against this approach. More than half say they regret not becoming involved in long-term financial planning, and 94 percent say they would want to be transparent with a spouse. Around 80 percent of women who remarried became more involved in financial planning in their subsequent relationships.

Spouses who are contemplating divorce and are unfamiliar with finances might want to gather and review as many financial documents as possible. This might include credit reports, tax records and statements from investment accounts. A spouse could talk to an attorney about what might happen financially in a divorce. For people near retirement, it may be important to look at how any retirement savings will be divided.

No Comments

Leave a comment
Comment Information

Set Up A Consultation, Email Our Firm Today

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Email Us For A Response

Newsome O'Donnell, LLC
200 Campus Drive, Suite 205
Florham Park, NJ 07932

Toll Free: 800-465-0163
Phone: 973-692-6317
Fax: 973-692-6377
Florham Park Law Office Map

Review Us