Divorce is naturally going to bring about some financial changes. If only your spouse worked, this change will be very pronounced. But even if you both worked – and will continue to do so – you are still dropping down to a single income. You may have gotten used to the standard of living that you enjoyed on two incomes.
It’s very common for your standard of living, then, to change after a divorce. Statistical analysis has shown that there’s an increase in the standard of living for men of about 10%. For women, on the other hand, there is an average decrease of 30%.
But some of this has to do with the fact that the numbers are averages. Men still make up a larger percentage of the workforce. If a couple had two incomes that were roughly equal, they would likely both see a reduction in their standard of living.
Why is this true?
The reduction in earnings is part of the issue, but it’s also that many costs are doubled. You and your ex are still earning the same combined total that you were during the marriage. But when you were married, you only had one rent payment, whereas now you both have a rent payment. You both have a car payment, you have separate utilities, you have to pay separate taxes and much more. By doubling many of these costs, it stretches your budget more than it did during the marriage.
The financial complexities of divorce are many, but there are legal solutions. It can help to work with an experienced team at this time. Planning in advance helps things go smoothly.