WOMEN'S household incomes suffer more than men's after divorce, but it takes men longer to recover emotionally, a study has found.
The joint research, led by the Australian Institute of Family Studies, also highlights the significant impact divorce has on the financial assets of divorcees, which leads to many requiring greater government support in later life.
The research to be presented at the institute's conference in Melbourne later this week shows the household income after divorce declined for women, but not for men.
In fact, while women's household income dropped significantly, particularly in the first year after divorce, males' income continued to rise. While the research showed some women were able to return to their pre-divorce income after six years through re-partnering, increased labour force participation and government benefits, this was not the case for divorced women with dependent children, who found it more difficult to combine paid work with family responsibilities.
The report based on data from the Household, Income and Labour Dynamics in Australia survey also showed that divorced men and women have fewer household assets than their married and never-married counterparts.
While the assets of those who divorce are worth $180,000 to $190,000 less than non-divorced people, even before divorce, the gap doubles to $360,000 to $390,000, six years after divorce.
Institute senior research fellow Dr Lixia Qu said for divorcees who did not re-partner, a lack of assets could lead to a greater reliance on government benefits.
"Divorce has a big impact on both men and women whose assets continue to fall behind married households and this impacts significantly on retirement income for divorced men and women who remained single, making them more reliant on government support to get by," she said.
Heidelberg mother-of-two Isabella Mammoliti, who was forced to return to work after her divorce in 2007, says it is not just the immediate financial burden of being a single parent that causes her "distress", but the long-term financial impact.
"My biggest worry is that I hadn't worked for over seven years and that's going to affect my superannuation in the future . . . I've also had to sell the family home, which has not only had an emotional impact on the children but will have a long-term financial impact."
The study which also looked at the emotional wellbeing of divorcees revealed that men reported greater feelings of isolation and loneliness than women, even up to six years after divorce.
After two years of divorce, 24 per cent of men said they felt isolated, compared with 12 per cent of women. After six years, more men (19 per cent) than women (12 per cent) still reported feelings of isolation.
Meanwhile, 35 per cent of men reported feeling "very lonely" two years after divorce, compared with 25 per cent of women and after six years, 26 per cent of men still reported loneliness compared with 20 per cent of women.
DIVORCE BY NUMBERS
- The annual income of divorced women decreased by an average $10,000 in the first year after divorce for men it increased by an average of $7000.
- After six years, womens average income was $3000 more than their pre-divorce income compared with $13,000 for men.
- 80 per cent of divorced women with no dependent children were employed two years after divorce compared with 60 per cent of women with dependent children.
- 19 per cent of men reported feeling isolation six years after divorce, compared to 12 per cent of women.
SOURCE: AUSTRALIAN INSTITUTE OF FAMILY STUDIES
Frequently Asked Questions about this Article…
How does divorce affect women’s household income according to the study?
The study by the Australian Institute of Family Studies found women’s household income falls sharply after divorce — on average about $10,000 less in the first year. Some women recover over time (by about six years their average income was $3,000 above pre-divorce levels), often through re-partnering, increased labour-force participation and government benefits, but many, especially those with dependent children, struggle to fully recover.
Do divorced men also lose income after divorce?
No — the research found a different pattern for men. On average men’s annual income rose by about $7,000 in the first year after divorce and after six years men’s average income was around $13,000 higher than their pre-divorce income.
What does the study say about household assets for people who divorce?
Using HILDA survey data, the report shows people who divorce have substantially fewer household assets than married or never-married peers. Even before divorce their assets were about $180,000–$190,000 lower, and that gap doubled to about $360,000–$390,000 six years after divorce.
How might divorce affect retirement income and reliance on government support?
The report warns that continued asset shortfalls for divorcees — particularly those who remain single and don’t re-partner — can significantly reduce retirement income and make divorced men and women more reliant on government benefits to get by.
How does having dependent children change the financial impact of divorce for women?
Divorced women with dependent children had more difficulty combining paid work with family responsibilities. Two years after divorce, 80% of divorced women without dependent children were employed compared with 60% of women with dependent children, which helps explain why those with kids face tougher financial recovery.
What does the study reveal about emotional wellbeing after divorce for men and women?
The research found men reported greater isolation and loneliness than women after divorce. Two years after divorce, 24% of men felt isolated versus 12% of women; after six years 19% of men still felt isolated compared with 12% of women. In terms of feeling ‘very lonely’, 35% of men reported this at two years (25% of women), falling to 26% of men and 20% of women at six years.
Who conducted the research and what data did they use?
The joint research was led by the Australian Institute of Family Studies and is based on data from the Household, Income and Labour Dynamics in Australia (HILDA) survey. Dr Lixia Qu, a senior research fellow at the institute, is quoted in the report.
What are the key numbers investors or people planning finances should know from the divorce study?
Key figures from the study: divorced women’s annual income fell by about $10,000 in the first year (men’s rose by ~$7,000); after six years women’s income was about $3,000 above pre-divorce level while men’s was ~$13,000 above; divorced households’ assets were $180,000–$190,000 lower even before divorce and $360,000–$390,000 lower six years after; employment two years after divorce was 80% for women without dependent children versus 60% for those with dependent children.
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