A recent article on the ABC asks the question who is worse off after a divorce, men or women? The article considers a recent report by The Australian Institute of Family Studies. Whilst the comprehensive report covers the impact of divorce on social connection and participation, perceived social support, satisfaction with life, and mental and physical health, for older Australians aged 55-74 years, the article focuses on the financial consequences of divorce.
The findings of the study on the financial impact of divorce seem logical. Couples who remain together have the continued advantage of dual incomes, are not forced to sell assets at inopportune times (i.e. the family home does not need to be sold off quickly or divvied up whilst the market is falling), and they retain the benefits of shared living expenses.
On the other hand, those who experience divorce can now only purchase property they can maintain on a single income, have to bear the costs of living solely and may also have to adjust their lifestyles and work schedules around parenting children (i.e. they might be more likely to engage in part time work or incur additional child care costs, etc.).
These differences would necessarily have long-term effects on capital gain, superannuation and surplus funds available for investment and therefore one would expect there to be a difference in outcomes, even decades later.
Have to admit thought, when I clicked on the link I was expecting them to blame lawyers costs and legal fees for the difference in financial outcomes, and certainly legal fees are an expense that couples who don’t divorce don’t have to worry about, but in fact what I found fits in very well with our other recent series of articles championing the benefits of mediation as a means to resolve family law matters whilst keeping legal costs as low as possible. Mediation is definitely the way to go, wherever possible.
I’m going to leave the issue of whether men or women are worse off after divorce for our new Friday series on controversial family law topics called “Myth or Fact”. Coming soon.
