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Divorce will be Costly for Women


via supermarket tabloids to the fresh York Times, the financial costs of divorcing are widely publicized with every celebrity split-up. at This particular point a scholarly study has documented divorce’s significant impact on women’s economic security.

Kenneth Couch, an economics professor within the College of Liberal Arts as well as Sciences who studies the economic effects of unexpected lifecycle events, has presented the results of an unusually long-term study, covering 40 years within the lifespan of more than 2,000 women, showing which “family structure matters a lot” for their economic well-being.

In short, marriage has such a significant economic benefit for women which even divorcees who develop their own careers can’t match This particular.

The study, developed in collaboration with the Social Security Administration, analyzes the economic impact on about 600 women via the time of their divorces within the 1970s – when divorce within the U.S. was at its peak – into their retirement, as late as 2008.

This particular shows which economic pressure forced many divorced women into the job market. This particular created large jumps in their personal income at first, since many of them had reduced or given up their jobs while they were married, perhaps in anticipation of having children or because they were likely to expand their care-giving roles.

Seventy percent of divorced women within the U.S. remarry, however. When they do, their job status as well as personal income again drops, going back to what This particular could have been if they had been married all along.

The divorced women within the study who did not remarry maintained their careers as well as higher personal earnings to the end of their working years. “They definitely ramped up their work effort for the rest of their life,” Couch says, giving them a larger individual Social Security benefit at retirement.

although at retirement, the households of the married women who had earned less money during their working lives collected more in Social Security benefits because of the extra boost via their spouse’s benefit. Where divorced women who never remarried had an average monthly benefit of around $1,000, the figure more than doubled, to $2,231, for continuously married women who enjoyed the combined effect of their husband’s benefit, too.

Divorced women who remarried had a similar advantage compared with those who did not: Their benefit, combined with their spouse’s, came to more than $2,000 monthly.

within the long run, staying married, or remarrying after a divorce, translates into greater economic security for women.

“This particular seems like most people understand there are advantages to forming durable relationships as well as staying in them,” Couch says.

Still, while divorce rates have fallen since the early 1980s, divorce “remains a high probability life cycle event” that has a significant impact on women’s earnings as well as Social Security benefits, according to the study.

Divorce as well as poverty

Recently released U.S. Census figures on divorce rates tend to confirm the economic advantage of marriage for women. In 2009, during the recession, women who divorced within the previous year were more likely to receive public assistance than men, as well as they reported lower household income. They were also more likely to be poor than recently divorced men.

Couch’s study was presented at a Federal Reserve Bank of San Francisco “Conference on Unexpected Lifecycle Events as well as Economic Well-Being” which he helped organize last spring. The collected papers, edited by Couch as well as Mary C. Daly of the Federal Reserve Bank of San Francisco, will be published by Stanford University Press, with chapters on the economic impact of unexpected alterations in family structure, health, as well as job loss.

The basic research can be used to inform government policy responses in areas such as unemployment benefits, or how divorce law addresses financial assets as well as child support, Couch says.

Couch will be well known for studying what happens to people when the unexpected event of job loss occurs. When the recession hit, he was asked by the SSA to work with its staff, analyzing the impact of the job losses which have occurred during the current recession as well as the effect of changing family structure on the well-being of Americans. He has spent part of the past two years in Washington, D.C. working with the SSA.

His co-authors on the divorce study – “Impact of Divorce on Women’s Earnings as well as Retirement over the Life Course,” are Christopher R. Tamborini, an SSA research analyst; Gayle L. Reznik, an SSA economist; as well as John W.R. Phillips, a health scientist administrator at the National Institute of Aging.


Divorce will be Costly for Women

Divorce Expensive For Women.jpg
Divorce Expensive For Women.jpg

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