DESPITE misconceptions, women continue to be at a financial disadvantage, earning less for the same jobs. Older women also are less likely to have substantial retirement savings than men.
Sutherland says for this reason, the average woman should carefully consider a divorce, even if she’s extremely unhappy in her marriage, simply because of the financial risks she might face.“Believing in a ‘happily ever after’ is far too great a risk. Relying heavily on the other spouse for financial support is always a risk, although it is more common with women believing that their husband will give them and their children financial support forever.
“In recent years I am seeing the scenario where the financial position of a woman who was primary breadwinner pre-divorce, is often better post-divorce, more often.” During the marriage, the ex-husband often earned less, was unemployed or battled to hold down a job for a long period of time. “Women who have taken a break from work to bring up their children should upskill and get back to work as soon as they can. This can be difficult after a divorce when one’s confidence could have taken a knock.” The break in earning also means lost years of retirement contributions and growth. “Upon returning to work, monthly contributions to retirement funds must be increased, as this is the most tax effective and cost-effective way to save.