According to an AICPA survey of CPA financial planners, 75 percent of divorced people at retirement age require a better understanding of financial management. Their findings also show that ex-wives are exhibiting more positive financial behaviors following the end of their marriages.
The data reveals specifics on the effective steps women have taken:
- Women are twice as likely to seek out a job (40.2 percent to 20.6 percent for men)
- Women are more likely to increase savings towards retirement (41.3 percent to 16.4 percent for men)
- Women are four times more likely to improve their spending habits (42.3 percent to 11.7 percent for men)
- Women are 14 times more likely to seek out financial advice after divorce (60.4 percent to 4.4 percent for men)
- Women and men are equally likely to see a deterioration of their spending habits post-divorce (25.7 percent to 24.9 percent for men)
CPA financial planners provided their own insight. They believe that what they do for their clients better prepares them for divorce. Those “extra steps” include:
- Updating wills or trusts (51.2 percent)
- Increasing saving for retirement (50.7 percent)
- Reducing spending (42.8 percent)
- Proactively establishing a pre-nuptial agreement (36.1 percent)
Tracy Stewart, AICPA Personal Financial Planning Executive Committee member, claims that baby boomer couples who get divorced later in life usually have one partner who handled all the finances. The other spouse lacks knowledge of the family finances, including retirement savings.
During the divorce process, Stewart encourages couples to focus on the long term when dividing assets and making financial decisions.