Married people in Minnesota may wish to avoid thinking about the idea of divorce or widowhood, even when it comes to financial planning. However, making a plan for these occasions can be extremely important for anyone’s financial health as a lack of planning can leave people at risk of a real financial crisis with the loss of a partner or the end of a marriage. Nevertheless, the lack of planning is widespread; according to a study, 65 percent of married Americans don’t have a plan for their finances in case of divorce or the death of their partner.
Despite the lack of planning, many Americans are confident in their ability to handle the financial challenges of sudden singledom; 72 percent of men and 62 percent of women said that they expected to be able to handle their financial situation. However, studies show that there are measurable financial impacts caused by divorce or widowhood, and given the frequency of these situations, planning can be very important to avoid pitfalls. Around 40 percent of marriages end in a divorce, and 25 percent of people over 65 years old are widowed. Married people reported higher personal income each year in comparison to both divorced and widowed people.