Women’s income ‘falls by half in the year following divorce’

Women are much more likely to go through financial problems after a marital split than men.

According to research by L&G, women see their income cut by 50% in the year following divorce.

That compares with just 30% for men.

Figures also showed that 24% of women struggle financially after ending a marriage, compared with only 16% of men.

Similarly, 19% of women find it hard to pay for essentials following a divorce.

That’s nearly twice as high as the figure for men (10%).

Childcare duties affecting women’s finances

This is, in part, because women are much more likely to take on the bulk of childcare duties after a split.

The L&G study found that 14% of women reduce their working hours following a divorce because of childcare responsibilities.

By contrast, just 7% of men did the same.

Meanwhile, 19% of women of women said they find it hard to balance childcare with work after separating, compared with only 9% of men.

“Women are still far more likely to pick up the majority of childcare and broader caring responsibilities, both during and after a marriage,” said Lorna Shah, managing director of retail retirement at L&G.

Half of divorces involve women financially reliant on husbands

Another issue facing women after divorce is that many are adjusting to the cost of living alone after depending on their husband’s income for many years.

More than half (51%) of divorces involve women who were financially reliant on their spouse during their marriage.

As a result, women are much more likely to feel the impact of no longer being able to split expenses such as housing costs and bills.

In fact, 63% of women cited this as a challenge, compared with just 39% of men.

Divorce affecting women’s retirements

Since women are more likely to take career breaks or work part-time to raise children, many have far less saved into a pension than men.

That’s leading to many worrying about their long-term financial future after a split.

Figures showed that 13% of women are concerned about the financial implications of retiring alone, compared with 8% of men.

But significantly, the issue of pensions is often being ignored when couples split up.

Just 13% were found to consider pensions when they split, and women were also found to be much more likely to waive their rights to their partner’s pension than men.

“When dividing finances, it’s important to look at everything, including pensions, which are often overlooked but can be a major asset,” Ms Shah said.

“This is especially important for women, who may have taken career breaks, or worked part-time to support their partner’s career, leaving them with smaller pension savings of their own.”