Are Women Financially Worse Off than Men After Divorce?

Let’s start with the hard facts - after divorce, women are more likely to experience a significant household income drop than men. The same is true in comparisons of same-sex marriages. Lesbians who divorce are more likely to experience financial loss than gay men who divorce. Keep in mind these are averages and every situation is different. Still, knowing the facts can help you protect yourself or someone you care about in case of divorce. 

The statistics from various sources tell the story. Research from London School of Economics showed that women’s household income fell by 20% after divorce, while men’s household income rose by 30% after divorce. After age 50, the financial consequences for women become even more pronounced, with average household income sinking by 45%. Men over age 50 see their household income decline too, but by 21%, less than half the amount of loss that women experience (source: National Center for Family & Marriage Research). 

In LGBTQ+ marriages, lesbian women are more likely to see their individual household incomes drop or face financial hardship after divorce than gay men who divorce. This is due, in part, to the fact that women still typically earn less than men. 2019 US Census data show that the median income for married gay male couples was $114,182 while married lesbian couples had a median income of $87,289. Lesbian couples are also more likely to have children in the household, which adds to the financial complexity of divorce.

Why the difference in divorce impact? As mentioned above, there is still a pay gap between women and men, on average, and this gap shows up in people’s post-divorce financial status. Women are also more likely to take time off from the workforce to care for children or elderly relatives, making it harder for them to regain their level of income once they return to work. And in the past, women were less likely to ask for financial protection, such as a prenuptial agreement, than they are now. 

As family law attorneys, we see all kinds of post-divorce financial situations. There are of course exceptions to each of these scenarios: there are certainly women who come out financially ahead after a divorce, there are more and more men taking time out of the workforce to care for children, and there are lesbian couples who are financially better off than gay men couples. Statistics and studies do not represent everyone, but they can help inform discussions on financial protection. Engaged, married, or divorcing couples can consider the possibility of post-divorce household income loss, and aim to reflect this possibility in prenuptial agreements, postnuptial agreements, and/or divorce agreements. Our goal as attorneys is to help our clients understand all of their options, including financial considerations, and represent their best interests. 

At Artese Zandri, we represent clients in family law matters, including prenuptial and postnuptial agreements, and separation and divorce. If you or someone you know would like to learn more about your options, reach out to us at consultation@artesezandri.com for a complimentary consultation.