Divorce has tremendous economic, as well as emotional implications for women. A small group of women actually see an improvement in their economic well-being after divorce, often by moving in with relatives, University of Georgia professor Teresa A. Mauldin found in a survey. But for most women, a combination of earnings that are lower than men's, the financial burden of children and infrequently received support plays out in predictable ways once the marriage is dissolved.
Bankruptcy
Richard K. Caputo, professor of social policy and research at Yeshiva University in New York, found in a study based on National Longitudinal Survey data that divorced women were more likely to declare bankruptcy than their male counterparts.Those who were divorced in 2004 were most likely to have declared bankruptcy--16.4 percent--followed by separated, 13.9 percent; married with spouses present, 11.2 percent; and never-married, 7 percent, Caputo reported in "Marital Status and Other Correlates of Personal Bankruptcy."
Household Income
Households headed by separated and divorced women in the United States and other nations, including Germany, the United Kingdom and the Netherlands, lose income in the wake of a divorce more than households headed by men. Writing in the European Sociological Review, Hans-Jurgen Andress, a professor of social and economic research at the University of Cologne, and colleagues cited studies showing the adjusted household income of U.S. women drops 24 percent, while that of men drops 6 percent. A study by Columbia University's Thomas A. DiPrete and Indiana University's Patricia A. McManus showed drops of 26 percent for U.S. women's households and 15 percent for men.
Legal Fees
Women who divorce may need to settle lawyer's fees of $10,000 to $20,000 or more if the case ends up in court, staff writer Donna St. George reported in the Washington Post. Women may be able to avoid these costs if the particulars of their case are simpler, and they pursue a do-it-yourself divorce, which may cost $100 or so, according to W. Bradford Wilcox, director of the National Marriage Project at the University of Virginia. Mediation also offers a cheaper option. Minneapolis financial planner Donna Harrington advises women going through a divorce to "control their attorneys," asking for references and estimates of their fees.
Living Expenses
Divorced women will need to use their income to cover more of the housing payments and utility bills and separate groceries. Women who get large assets such as the house may face substantial expenses including the mortgage and upkeep.
Taxes
Child support received by the woman is not included as taxable income, but alimony or maintenance is, notes attorney Robert E. Nowak, author of "New York's Equitable Distribution Law." If she is the custodial parent, a woman can claim dependency exemptions for her children. Women cannot deduct legal fees for a divorce but can deduct tax advice if that is allocated separately on the lawyer's bill.
Social Security and Pension
A divorced woman who does not remarry can receive benefits on her ex-spouse's record after age 62 if she meets certain conditions, according to the Social Security Administration. Most states also entitle a divorced woman to a portion of her husband's pension, according to Lawyers.com.
References
- "Family Relations;" Women Who Remain above the Poverty Level in Divorce: Implications for Family Policy; Teresa A. Mauldin; April 1990
- "Marriage & Family Review"; Marital Status and Other Correlates of Personal Bankruptcy; Richard K. Caputo; 2008
- "European Sociological Review"; The Economic Consequences of Partnership Dissolution; Hans-Jurgen Andress et al.; 2006
- "The Washington Post"; Estranged spouses increasingly waiting out downturn to divorce; Donna St George; March 22, 2010
- "Minneapolis Star Tribune"; Divorce provides lesson in economics; Dan Wascoe Jr., July 17, 1994
