For those who get divorced, especially later in life, there is often a drop in their standard of living. Some studies have found that this is true for both men and women, although the decline for women tends to be a bit more pronounced.
There are two main reasons for this. The first is simply that the couple may have had two sources of income while they were married. Maybe both people were working, so they got used to a certain level of income. After the divorce, even though they are both still working, each person only has one income. There is simply less money to go around, and this can become clear fairly quickly after the marriage ends.
The costs are not cut in half
But all of the costs that each person is facing are not necessarily going to be divided in half. Instead, both people may have to address these costs on their own.
For example, say that a couple is paying a certain amount per month for their home mortgage. Since they live together and share this cost, it makes up a smaller percentage of their overall budget.
But after the divorce, both people need to have a place to live on their own. They may each find that they are facing roughly the same mortgage payment as they were when they were married, but now it is a far greater percentage of their budget because they are trying to make that payment on just one income. Other costs that are duplicated include car payments, utility payments, property taxes and much more.
So, not only is there a decline in income, but it can feel like costs go up even when they stay relatively stable.
Addressing financial concerns
You cannot necessarily avoid a change to your standard of living after divorce, but it is important to know that it can happen and to take proactive steps to address your marital assets as you navigate the divorce process.
