NEW YORK (Reuters) – Emotions — and expenses — often run high during a divorce, but people and their bank accounts can bounce back given enough time. A new study from Fidelity Investments, released Tuesday, shows that by five years after a divorce, most people feel recovered from the psychological and financial blows.
FILE PHOTO: U.S. one hundred dollar notes are seen in this picture illustration taken in Seoul February 7, 2011. REUTERS/Lee Jae-Won
You can speed your recovery by taking smart preventative measures, learning from the cautionary tales of those who have gone before.
Among the biggest regrets the Fidelity study exposed, for example, is that 80% of those who were not involved in their daily finances during their marriages felt bad about it once they get divorced. Those people also took longer to recover from the financial stress of divorce, with nearly 40% of them saying they have yet to recover.
Another big woe is not being involved in long-term planning and retirement investment, of particular concern for women. While more than 80% of men and women reported being involved in daily finances, only 60% of women said they were involved in long-range planning.
“It’s a learning opportunity. People don’t make the same mistake twice,” said Meredith Stoddard, life events experience lead at Fidelity.
So what can you do now to protect your future self – which works not just for divorce but also if you end up widowed, or simply want a more financially equal marriage?
Here are three tips:
1. Pay attention and get involved