Whether you’re a high-earning spouse giving up considerable assets or a single parent struggling to support children on your own, divorce could spell financial trouble. But does everybody suffer upon divorcing? Or are financial difficulties limited to specific situations or demographics? The answer is more complicated than you might think, as you’ll observe below:
The Role of Gender
A study published in the Review of Social Economyindicates that nearly half of American families suffer poverty immediately following divorce. In general, however, how spouses fare depends largely on gender.
In a phenomenon The Atlanticrefers to as the ‘divorce gap,’ women face severe financial penalties after divorcing, while some men actually experience significant increases in income. This flies in the face of common stereotypes indicating that some women divorce purely for alimony. Differences, however, may be muted for couples with similar earnings—particularly men who earned less than 80 percent of the couple’s total income while married.
Short Versus Long-Term Financial Suffering
Research indicates that, in most cases, the bulk of post-divorce financial difficulties arrive in the first several months following dissolution. These issues may result from the loss of a shared home, loss of health insurance, or failure to receive mandated child support payments. While financial burdens can continue far into the future, many divorcees are able to slowly improve their quality of life.
A variety of financial struggles can accompany divorce, but they’re by no means inevitable. The right attorney can work with you to obtain the best possible outcome. Contact the Brown Law Offices today to learn more about your options.