Statistics show divorce makes men richer

According to research carried out recently by the Institute for Social and Economic Research, divorce leaves men, in particular those with children, better off. At the same time, it leaves women significantly poorer.

The statistics show that when a father separates from the mother of his children, his income goes up by about a third. For women, regardless of whether they have children or not, the picture is much bleaker, with incomes falling by more than 20%.

The survey entitled ‘Marital Splits and Income Changes over the Longer Term’ is the first to investigate changing wealth levels associated with marriage breakdown in Britain. Its findings question the prevalent belief that men suffer financial penalties due to divorce, as their wives live comfortably off the proceeds.

The research also showed that maintenance paid by former partners had little impact, since only 31% of separated mothers received any payment from the father of their children.

However, the impact on a woman’s financial position is lessened if she is employed both before and after the divorce, or if she starts to work after the relationship has broken down.

The author of the research, Professor Stephen Jenkins points out that in some cases, the man’s situation is adversely affected by divorce, for example if he has children with a new partner while paying maintenance to his first family.

If you’d like advice on the financial implications of relationship breakdown, please contact Alistair Dobson on 01858 445 480 for free initial advice.