Poll: Split Tougher with No Cash

EDUCATION PLAYS A PART

Education may also play a part in why low-income couples have more difficulty. The lower the income bracket, the less likely the couple is highly educated, said Stacy Francis, president of Francis Financial, Inc., and a member of the board of directors for the Financial Planning Association. “Often you are dealing with a less educated audience,” Francis said. “You look at the statistics, and those individuals who make less than $50 thousand are less educated than those above it.”      

That translates to less sophistication and understanding when it comes to financial issues, she said. Francis founded Savvy Ladies, an organization that helps women take control of their finances. The difficulty low-income couples face is compounded when they attempt to divorce on their own without an advocate or a professional of some kind, Francis said. “Many of them are having to do do-it-yourself divorces,” Francis said. “So the real burden of educating them on this whole process is really just lost to them. And as you know, the divorce process can be pretty tough to navigate on your own.” 

HOW TO FINANCIALLY SURVIVE

If a low-income couple is barely able to eke by financially, splitting the household in two may be impossible, Shapiro said. Barring an abusive relationship, she would recommend seeing if it is possible to find a way to live together to keep the finances intact. “Unless there is abuse, from a financial perspective these couples might be better served if they try to work out some sort of coexistence,” Shapiro said.

Finding a way to work together amicably can make the process easier and less costly, said Francis. “We find that individuals who are collaborating, working together, are having a much easier time to divorce,” she said.

By working together, the divorce takes less time, costs less to complete, and the couple is happier with the outcome, Francis said. One way Leitz recommends finding professional advice while keeping the costs down is to look for a financial planner who will provide a consultation. Lietz’s office gives new clients a consultation meeting for $200 that includes information that she calls Divorce 101 – basic guidance on how the court system will work, and the best way to split assets.

She said many people take that one-time consultation and go on to get divorce services for low-income families because they become armed with enough information to separate their finances. But in the end, Leitz said, low-income families usually have a harder time adjusting their finances after divorce. “I think they do because whether or not they make wise financial decisions, it’s going to be hard financially for both of them,” Leitz said. “They will feel the financial pinch more acutely.”              


Michele Bush Kimball has a Ph.D. in mass communication with a specialization in media law.  She has spent almost 15 years in the field of journalism, and she teaches at American University in Washington, D.C.  She recently won a national research award for her work.  She can be reached at m.kimball@divorce360.com.