12 Financial Tips for Women

    When a woman is in the middle of a divorce, she – or the professionals she hires to protect her financial interests – spend a lot of time with a calculator. Alimony is figured, and maybe child support, too. The value of property and other joint assets are reviewed and divided. Plans for satisfying debts are created.  

The signing of the divorce papers, however, doesn’t mean this focus on money should end. Paulette Smith, who teaches personal finance classes for the Delaware Money School (www.delawaremoneyschool.com), recommends that single-again women assess their financial goals. While they should leave room in the budget to do things that are personally rewarding, she said, they also must manage their money properly to cover expenses.  

That might mean adjusting spending patterns. Eating dinner out a few times a week might have been affordable when there were two incomes supporting the habit. But eating that many restaurant meals might not be realistic once the woman becomes responsible for covering household expenses alone. “You’ve got to take stock of things and modify your behavior,” said Smith, a retired executive manager for global management consulting company Accenture.  

Tax season puts money on everyone’s mind, so why not take time to review those finances. Here are 12 pieces of financial advice for divorced single women to consider now, at tax time and for the future.  


FINANCIAL TIPS FOR YOU NOW

1.  Understand your cash flow.
Joan L. Sharp, a certified financial planner who runs Life Strategies LLC (www.lifestrategiesllc.com) in Wilmington, Del., said women need to know where their money comes from and how long they can rely on income streams with time limits, which is sometimes the case with alimony. This knowledge helps with money management decisions.

2. Avoid competing with your ex-spouse over who spends more money on your children.
Quality time and activities with children are less expensive and more meaningful, Sharp said.

3. Set aside money from every alimony check in a high interest bearing savings account.
Because alimony is a form of income, some women may have to pay taxes on it every quarter. The account ensures there is money to cover this debt to the government and brings in a little extra income from interest, Sharp said.

4. Purchase health insurance if you were previously covered by your ex-spouse’s policy.

5. Review stocks and other investments with your broker or financial advisor.
Sharp said changes in your financial situation might change your tolerance for risk, making some old investments inappropriate. Also determine what types of decisions your broker is authorized to make on your behalf and decide if they are still appropriate.