Separation and divorce often bring about immense emotional stress and significant life changes. Amidst the emotional turmoil, women frequently encounter severe financial difficulties that can further compound their distress. I hope to shine a light on the myriad of financial challenges women often face after a separation or divorce from a personal perspective.

1. Reduced Income and Financial Dependence

When a marriage or relationship ends, women often experience a substantial reduction in household income. This decline typically occurs due to a variety of reasons, such as loss of spousal or partner support, decreased access to shared assets, or career interruptions to prioritise childcare. Consequently, women find themselves at a disadvantage financially, particularly if they were financially dependent on their former partner.

2. Asset Division and Property Settlements

Women may struggle with the equitable division of assets and property settlements. The outcome can vary widely depending on multiple factors, including jurisdiction, negotiation skills, legal representation, and the couple's financial situation. Disparity in wealth or power dynamics can leave women in a comparatively weaker position, leading to an unfair distribution of assets, leaving them financially vulnerable in the long run.

3. Child and Spousal Support

Child and spousal support are essential components of securing financial stability after a separation or divorce. However, enforcing these obligations can often be challenging, with many women experiencing delays or outright refusal to pay. The lack of consistent financial support can have a lasting impact on a woman's ability to provide for herself and her children, particularly when juggling employment, childcare, and household responsibilities.

4. Economic Re-Entry and Career Disruption

In cases where women temporarily left the workforce to nurture the family or support their partner's career, getting back into employment can be challenging. Career disruptions endured during the marriage can result in outdated skills, a loss of professional networks, and reduced earning potential. Consequently, women may struggle to secure well-paying jobs or may require further education or training before re-entering the job market.

5. Legal Costs and Financial Resources

The legal complexities and associated costs of divorce proceedings can significantly impact women's financial standing. Legal fees, consultations, and court expenses may quickly deplete personal savings or push women into debt. Without adequate financial resources, women may be forced to compromise their rights or settle for unfavorable agreements, further exacerbating their financial hardships.

6 Inability to access bank loans and funding

After divorce, many females face a multitude of challenges, particularly when it comes to accessing bank loans and funding. This inability stems from various factors that disproportionately affect women in the aftermath of marital dissolution.  As a result, their overall financial stability becomes compromised, making it challenging to qualify for bank loans or secure funding easily.  This can be due to a lack of credit history or a damaged credit profile.

Additionally, societal biases and gender disparities often play a part in the challenges faced by women in obtaining post-divorce bank loans. Although laws and regulations have evolved to promote gender equality, the ingrained biases within some financial institutions persist. Discrimination and stereotypes about women's financial capabilities may lead to higher rejection rates and more stringent requirements for divorced women, further exacerbating their difficulties in obtaining financing.

In recounting my personal experiences and the numerous challenges I faced in the aftermath of divorce, I have come to realise that the financial struggles faced by women in these circumstances are far from trivial. As women carve out new paths for themselves, we often find ourselves grappling with deep-rooted inequalities and injustices that persist in various facets of society.

It is with a sense of empathy that I urge society to recognise the urgent need for change. We must foster an environment that supports women in rebuilding their lives, specifically focusing on addressing the disparities that hinder their financial stability after divorce.

Investing in comprehensive educational programs that equip women with financial literacy and entrepreneurship skills becomes a crucial step in empowering them to navigate post-divorce challenges. Moreover, ensuring accessible legal support to safeguard women's rights during divorce proceedings can alleviate the significant disadvantage they too often face.

Together, let us nurture a society that values and supports women's economic independence, breaking free from the chains of financial strain and empowering them to rebuild their lives with resilience and hope.


Kylie Harding is an Investment Adviser who believes in free access to information about building financial literacy at every stage in life has the potential to empower women and inspire economies.

Contact Kylie today on [email protected] or 02 9998 4206.

Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.

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