For Women, Financial Help Is at Hand

Divorce is a life-changing event, and for most people, it is a financially devastating experience. Spouses who had little or no control over finances during marriage might be in for a shock about money after divorce. They may have to set up budgets, pay bills, and manage assets for the first time in their lives. Even if they hire a bookkeeper, accountant and financial advisor, they need to tune in and attend to details of their finances.

Several resources are available that make financial management more palatable. An excellent primer is "Divorce and Money" by Violet Woodhouse and Dale Fetherling, published by Nolo Press and the personal finance articles in The Wall Street Journal.

On October 19, 2004, the WSJ ran an article on "Rebuilding after a Divorce," featuring a divorced woman whose portfolio was analyzed by three financial planners. The general consensus was that the woman had to cut spending and start saving for retirement.

Financial planners are now specializing in planning for divorcing parties. They are comfortable analyzing the tax consequences of proposed asset divisions, alimony and child support. Their input is invaluable in putting a dollar amount on various proposals and projecting cash flow after divorce. Many women opt for owning the house after divorce and sacrifice their share of pension and retirement assets in exchange for their husbands' share of the house. That could be an expensive choice, especially for a woman re-entering the work force later in life. Although housing has appreciated dramatically in recent years, a wise woman should keep some of her eggs in pension and retirement accounts and make regular contributions toward those accounts.