As we have just marked International Women's Day, it is important to recognise the ongoing financial inequalities that many women face, particularly after divorce. Divorce is often considered a fresh start, but for many, it can mark the beginning of financial hardship. Despite strides in gender equality, the economic consequences of divorce disproportionately affect women, often pushing them into poverty, debt, or long-term financial instability. Terri Anson-Dean, Senior Associate in our Family Law team in Witney, explores the financial challenges that can arise and offers guidance on how to protect yourself.
Why do some individuals face greater financial difficulties than others do after divorce?
Studies consistently show that women experience a greater decline in their financial well-being following separation, while men tend to recover and often improve their financial situation; the factors that contribute to this disparity are:
- Unequal earnings and career sacrifices: Women are more likely to take career breaks, which can lead to lower lifetime earnings and reduced retirement savings.
- Unpaid childcare responsibilities: Many divorced women take on the childcare responsibilities, often with inadequate financial support from their ex-spouses.
- Legal and financial barriers: Access to legal representation along with limited knowledge of the marital finances can make a significant difference in divorce settlements. Women with limited financial resources often struggle to secure fair settlements.
- Housing and living costs: When meeting the day-to-day care needs of children, stable housing is required, which can often be unaffordable post-divorce.
While women are statistically more likely to experience financial difficulties following divorce, they are not the only ones who can face financial instability. Men, especially those who have taken on the childcare responsibilities and/or sacrificed career progression, may also find themselves struggling post-divorce. Likewise, those in same-sex marriages often also encounter similar legal and financial challenges where one party has taken on the role of care-giver and as a result their career opportunities are reduced.
As we mark International Women's Day this month, it is crucial to recognise that true gender equality cannot be achieved without addressing the economic disparities women face after divorce. However, financial struggles are not exclusive to women; it can affect anyone post separation depending on the individual scenario. By pushing for legal forums, promoting financial empowerment, and ensuring workplace equality, we can help ensure that no one is left struggling due to the end of a marriage.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
