Dealing with the Financial Implications of Divorce

Getting married and starting a life with the person you love is a marvellous new chapter to begin, unfortunately, most marriages do not last. The divorce rate has increased by 5% and statistics from 2012 show that of the 161,112 marriages that took place in South Africa, 22,000 of those marriages resulted in divorce.

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In most instances, the wife almost always ends up in a position of disadvantage. After experiencing a divorce, she will be forced to deal with emotional trauma and extra financial implications, and too, face the challenge of dealing with getting herself back to where she used to be and figuring out where she wants to be.

Michelle, 46 years of age, has two children. Over dinner one night, Michelle’s husband declared that he no longer wished to be in the marital union, that his mind was made up and that a divorce was pending. During the course of their marriage, Michelle had assumed the role of the family caregiver. She had opted to leave her full-time job to be a full-time mom and further homeschooled the children. After years of marriage, where her husband had taken care of things such as the medical aid, car services, Michelle had to find a new way to move through life by herself.

What did all of this mean for Michelle? 

Leaving her employer meant that she had no retirement benefits and that she solely depended on her husband to provide her with an income. Now that they were divorced, Michelle had to gear herself up and find work so that she would be able to provide for herself and her children (a measly sum of R 500 per month for child support just won’t do!).

At the age of 46, after not working for decades, returning to the working world can be challenging for a number of reasons: maybe someone younger than you is your boss or maybe you have to accept a salary that is 25% less than you are worth.

If Michelle had a Financial Plan specifically suited to her individual situation, she would be able to walk away from the divorce without having to feel the burden of financial pressure. She would have had sufficient structure to plan for her divorce and in the process, protect her children so that they don’t suffer too.

When working closer with a Financial Planner who has your best interests at heart, you will be taught how to be financially independent, even if you are entering or are currently in a marriage.

Designer Financial Planning ensures that our Financial Plans and strategies are set in place to empower our female clients so that they will never have to depend on anyone else.

If you are going through a divorce or have filed for a divorce yourself, Designer Financial Planning will look at the following:

  • How are you married?
  • How many assets you have?
  • How much outstanding debt do you have?
  • What can we do together to ensure that you are not disadvantaged in the end?

For information about designer Designer Financial Planning, please feel free to send us an email in the below Comments Section, or contact us directly for an obligation free meeting to see if what we have to offer can protect your future.

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