Here's the sad truth: Divorce doesn't just break your heart; it can leave you broke.
When married, women's median weekly earnings are about 20 percent higher than women who are divorced, separated, widowed or who have never been married, reports US News and World Report based on figures from the Bureau of Labor Statistics. Married women even have the edge on single men, earning almost 10 percent more than them, too.
But after divorce, a woman's financial profile plummets, falling by 41 percent, on average, nearly twice the income loss of divorced men, according to a report from the U.S. Government Accountability Office.
According to research by Stephen Jenkins, a professor at the London School of Economics, men, on the other hand, see their incomes rise more than 30 percent post-divorce.
The pay gap is partly to blame. In heterosexual marriages where both the man and woman are employed, the man out earns the woman 77.8 percent of the time, according to the Bureau of Labor Statistics.
But the divide is not entirely accounted for by the difference in earning power between men and women so much as it is the pay disparity for the unpaid labor of parenting.
The main reason women bear the brunt of divorce's financial devastation, according to Jenkins, is that during the marriage, they are more likely than men to leave their careers to raise kids. "The key differences are not between men and women, but between fathers and mothers," he tells The Guardian.
Having stepped off the corporate ladder for a number of years, these child-rearing women may not have advanced as far in their careers as their spouses who didn't take off, leaving them less developed workplace skills and holes on their resumes.
"The dynamic is changing a little as more women are staying in the workforce and continuing and accelerating their careers," Nicole Mayer, a certified divorce financial analyst, and partner at financial planning firm RPG Life Transition Specialists tells US News and World Report, "but typically, divorce hits women harder than men."
And that's not even counting the bill of the divorce itself. According to Divorce Magazine, the cost of divorce can range from as little as $8,500 to over $100,000 for lawyers and legal fees. But if the split is amicable and you can take the DIY divorce route, you might be looking at a tab closer to the cost of an airline flight — from $200 to $500.
Remember: if the divorce isn't done yet, the price tag for lawyering up need not fall only on you, a divorce lawyer in Boston tells The Atlantic: "If someone calls me and says, 'I need an attorney but I have no money,' I remind them they're not divorced yet, so they actually do have money. In those cases, I file a motion asking for retaining fees and the other person's lawyer will cut a check."
In fact, in all divorce matters, it's important to remember your legal rights. Here's a big one: if you didn't sign a prenuptial agreement, and you live in Arizona, California, Idaho, Louisiana, Nebraska, New Mexico, Texas, Washington, or Wisconsin, you're entitled to half of any assets acquired during the marriage. Those are joint assets to be divided equally. Even if your name isn't on the deed to the house, half of it is rightly yours.
You may have let your emotions get the better of you when you were falling in love, but don't let them cloud your judgment here at the end. The objective is to not let the pain of the breakup lead to further financial distress. Marie Claire found that women who wanted to "get it over with," experienced guilt over the end of the relationship, and those who trusted their exes to make good on promises once the divorce was finalized suffered financially.
"The silver lining [to divorce] is that most women feel much more confident, much more in control of their finances after the divorce than before," Natalie Colley, an analyst at financial planning firm Francis Financial tells US News and World Report. "That's because they're finally the ones in control of their finances."
"You always assumed there'd be two of you and maybe two 401(k)s and two IRAs, and that's now all changed," Mayer says. "So now it's really [about] updating your picture as a whole, your long-term picture."
And that can be a beautiful new image. It's time to start imagining your post-divorce dream.
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Home garden and porch
As anyone who has ever sold a house will tell you, you must prioritize curb appeal. Before a potential buyer even considers looking inside your house, they notice the outside first. Does it attract the right kind of attention? Does it take away from the feel you're going for? If you plan to sell sometime soon, you must think about these things. Here are some landscaping options to increase your home's curb appeal, so you can get the best price on your home.
Extensive Plants and Greenery
A barren front yard won't get you the price you want on your home. So, invest in at least a little bit of greenery to keep the surrounding area from looking too dead. Shrubs and bushes tie the house to the lawn that precedes it, and flower beds bring a pop of color to an otherwise drab structure. You can also strategically plant some trees to improve the overall feel of your home's exterior.
Lawn Care
As we mentioned, your lawn is one of the most prominent features of your home's exterior. A patchy, dried-up lawn will quickly drive your home's price way down. Some of the best landscaping options for your home's curb appeal involve improving your lawn for the next inhabitant. Overall fertilization, ground aeration, underbrush removal, proper mowing—all of these lawn care tasks contribute to a greener and more lively area that invites people to see your house, rather than stay away from it.
Paved Pathways
There's nothing like a broken and disheveled pathway to make someone think twice about buying a property. Just as you want the entryway in your house to be welcoming, so too should the pathway leading up to the house be inviting. The pathway from the street to your front door provides plenty of real estate to get creative with. You don't have to settle for a boring concrete pathway. Consider something more eye catching, like a cobblestone path or intermittent brick patterns, as a way to better welcome potential buyers.
Usable Outdoor Furniture
Landscaping doesn't just involve the ground you walk on; also included are the items you use as extras to the overall look. Outdoor furniture is one such extra that you don't necessarily need but can look quite attractive if done correctly. Staging is important with outdoor furniture. Old, broken-down pieces will only look like more work to the potential buyer. A few comfortable chairs, a bench, or a table with an umbrella really go a long way to improving your outdoor aesthetics.
A good tip for deciding on curb appeal items is to decide what you personally would want to see as a part of a welcoming home's exterior. You don't need to go overboard, but a little bit of forethought could net you quite a lot of extra cash in the sale.
Unfortunately, giving back can sometimes go haywire. If you're ready to make a donation, first consider common mistakes made when giving back.
Many people strive to support their community by donating their time or their money. When you find a meaningful cause, you might be quick to cut a donation check. Though it's admirable to be quick to act charitably, you should be wary of several common mistakes made when giving to charity. Being mindful of these mistakes and learning tips for making informed charitable choices can help you make the most out of your generous check.
Acting Quickly Out of Emotion
Mission statements are meant to be compelling. If you're an emotionally driven individual, it's natural to pull out your wallet at the sight of a sad puppy on TV or when informed about food insecurity over the phone. Unfortunately, not all charities are as effective or official as they may seem.
Take your passion for helping others one step further by making sure your chosen charity is legit. Speaking with a representative, reviewing their website and social media accounts, and looking at testaments online can give you a better idea of whether the organization is worth your donation.
Forgetting to Keep Record of the Donation
Don't forget that you can reap some financial perks from giving back! With the proper documentation of your donation, you can acquire a better tax deductible.
If you donate more than $12,400 as a single filer or $24,800 as one of two joint filers, you're eligible to deduct that amount from your taxes. So, when a charity asks if you'd like a receipt of donation, always answer yes.
Donating Unusable Materials
Most charities can utilize a monetary donation—it's the physical donations that usually cause some issues. Providing a local nonprofit with irrelevant materials or gifting them with unusable products are surprisingly common mistakes made when giving to charity.
Always check your intended charity's website for a list of things they do and do not accept. The majority of places will provide a guideline to donating or offer contact information to clarify any questions.
Strictly Giving at Year's End
As more and more people get into the holiday spirit at the end of the year, nonprofit organizations see an influx of donations. While it's great to spread holiday cheer via a monetary donation, it's important to keep that spirit going year-round.
With regular donations, charities can more effectively allocate their annual budget. Setting up an automatic monthly donation with the charity of your choosing can maximize your impact. You can account for a monthly donation by foregoing a costly coffee every once in a while.
Knowing how much you should spend on home maintenance each year is hard to figure out and may be preventing you from buying your first home. The types of costs you'll incur depend on the house you buy and its location. The one certainty is that you should start saving now. Read on to figure out how much to start setting aside based on the home you own.
The Age of Your House
Consider several factors when budgeting for home repairs. If you've purchased a new home, your house likely won't require as much maintenance for a few years. Homes built 20 or more years ago are likely to require more maintenance, including replacing and keeping your windows clean. Further, depending on your home's location, weather can cause additional strain over time, so you may need to budget for more repairs.
The One-Percent Rule
An easy way to budget for home repairs is to follow the one-percent rule. Set aside one percent of your home's purchase price each year to cover maintenance costs. For instance, if you paid $200,000 for your home, you would set aside $2,000 each year. This plan is not foolproof. If you bought your home for a good deal during a buyer's market, your home could require more repairs than you've budgeted for.
The Square-Foot Rule
Easy to calculate, you can also budget for home maintenance by saving one dollar for every square foot of your home. This pricing method is more consistent than pricing it by how much you paid because the rate relies on the objective size of your home. Unfortunately, it does not consider inflation for the area where you live, so make sure you also budget for increased taxes and labor costs if you live in or near a city.
The Mix and Match Method
Since there is no infallible rule for how much you should spend on home maintenance, you can combine both methods to get an idea for a budget. Average your results from the square-foot rule and the one-percent rule to arrive at a budget that works for you. You should also increase your savings by 10 percent for each risk factor that affects your home, such as weather and age.
Holding on to savings is easier in theory than practice. Once you know how much you should spend on home maintenance, you'll know what to aim for and be more prepared for an emergency. If you are having trouble securing funds for home repairs, consider taking out a home equity loan, borrowing money from friends or family, or applying for funds through a home repair program through your local government for low-income individuals.
