In a new report from TheWeek, it was revealed that divorce can have a detrimental effect on the income of many women, who either file for divorce or have spouses who file.
Beyond the “emotional toll” that divorce can take, the news site notes that it can cause a decline of 41 percent in household income for females, while males experience a 20 percent drop. The original numbers come via 2012 Government Accountability Office findings.
This seems to contradict previous research that shows women breadwinners to be the most common filers.
In our own studies reviewing do-it-yourself divorce cases, women filers have averaged $10,000 more per year than their exes.
Factoring The True Cost Of Divorce
According to TheWeek, if one is heading for a split, it’s best to plan accordingly. Even a simple, amicable divorce — such as a DIY divorce — “is unlikely to cost less than $5,000 per person,” the site noted, adding that fees double when “child custody is a factor.”
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According to the report, couples spend close to $20,000 on divorce in these cases.
“Despite those costs, don't be tempted to skimp on the services of a financial specialist to help you through the ins and outs of taxes, retirement plans, alimony, insurance, and credit issues,” site contributor Sergio Hernandez added.
As For The Income Decline…
While it wasn’t clear why women saw twice the income reduction of men, it could have something to do with providing for most of a child’s needs. While men are usually ordered to pay child support, it typically isn’t enough to compensate for the full expenses, so women find themselves picking up the slack. There’s also the “deadbeat dad” factor. While that can lead to legal troubles for the man as well as court-ordered payouts, it doesn’t always translate to the woman seeing any extra money.
Additionally, any time you see the size of a household shrink, that can lead to higher tax liabilities and adjustments. (All the more reason why a good financial specialist is invaluable to the divorce process.)
Do you find it surprising that women see less household income post divorce than men? What do you think the contributing factors are?
