Many Women Leave Financial Decisions To Husbands, Leaving Them Vulnerable
A new trend is emerging in the world of divorce and is negatively impacting the lives of female divorcees everywhere.
A report that was released by UBS Global Wealth Management shows that a majority (56%) of married women leave their major long-term financial planning to their spouse. This leaves women at an extreme disadvantage in the case of a separation or death. Considering that we have seen a doubling in divorces among middle-aged persons since the 90s, these so-called “gray” divorces are becoming a serious concern. There is a tremendous need for women to be more participatory in their marital finances so they can avoid this extreme vulnerability in case of divorce.
“It’s not just older women slipping into the more traditional gender roles of their parents: Some 61 percent of millennial women said they leave investment decisions to their husbands. That compares with 54 percent for baby boomer women,” according to Bloomberg.
It has also been noted that a large portion of divorcees and widows claim that they regret not taking on a larger role in their finances while they were married. Paula Polito, UBS Global Wealth Management’s chief strategy officer, says, “‘Women and divorcees who find themselves alone wish they had been more involved in finances while they were married. Nearly all of them advise other women to get more involved early on and break the cycle of financial abdication.”
This trend is one of many surprises that are brought up to individuals going through the divorce process. Other common surprises include hidden spending, hidden debt, secret accounts, and occasionally one of the most problematic: outdated wills, also according to Bloomberg. Including oneself in the money conversation is crucial to avoid the possibility of being left in the dust financially after a divorce.