Divorce can be hard on women, economically. For all the rhetoric concerning how men are taken advantage of and left in poverty by the child support system, women face a more difficult challenge after the breakup of a marriage. Women experience a per capita drop in their income because of a divorce and have higher poverty rates.
Yet they still divorce. Why? Maybe because no one wants to be miserable all of the time. And the last few years have put that to a test. A Bloomberg story profiles one couple who remained together as both their marriage failed and their business sank into trouble. But their economic position was so precarious, they literally could not afford to divorce.
Now, as the economy brightens, “family dynamics” become normalized, meaning things like divorces and births, which people had placed on hold during the recession after a job loss or as their business limped along, move forward again.
On a positive note, one benefit of this normalization is that it drives spending, and that drives more jobs and further economic growth. While a divorce can be difficult financially, one result of a family being split into two parts is that it necessitates a spouse to move into an apartment and buy a new household of furniture, sheets, towels, pots and pans and all of the other necessities required for daily life.
However, the splitting of the economic pie is one reason women’s per capita income falls and this is why it is vital that your property division be done correctly, and accurately to ensure you receive an equitable share of the marital assets.
And we hope like the one woman in the story, you are smiling when it is all over.
Source: Bloomberg.com, “Worsening U.S. Divorce Rate Points to Improving Economy,” Steve Matthews, February 18, 2014