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25/07/2012

Women Worse Off After Divorce

Joint research led by the Australian Institute of Family Studies has found that equivalised household income after divorce declined for women but not for men.

The research found that some women were able to recover their income after six years through repartnering, increased labour force participation, and an increased proportion of income coming from government benefits.

However, Australian Institute of Family Studies Director, Professor Alan Hayes said this is not the case for divorced women with dependent children.

"Divorced women with dependent children found it difficult to recover their income post-divorce. We know from other research that sole mothers with dependent children experienced difficulties combining paid work and family responsibilities with less support," he said.

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"The study also found that divorced men and women had a lower household income prior to separation than those who remained married and this has a bearing on their financial position in six years.

"While divorced men and women had lower assets before they separated than those who remained married, the gap appeared to widen at least in the first six years after divorce.

"There is some evidence that the effect of divorce on assets lasts into older age and this negatively impacts on income in later life. But the long term effects of divorce are largely offset by repartnering."

Joint researcher, Professor Matthew Gray of the Australian National University said while assets took a hit, most divorced women were able to recover their income position over six or seven years.

"This happens by a combination of increased employment rates, re-partnering and an increased level of government benefits. But many divorced women and men were left with a large and widening gap in their assets, compared to non-divorced contemporaries," he said.

Professor David de Vaus of the University of Queensland explained that one of the factors behind this is likely to be that many divorced women and men missed out on the recent property boom, a period when many Australian households were able to build up considerable assets due to steadily rising house prices.

(CD)

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"Joint research led by the Australian Institute of Family Studies has found that equivalised household income after divorce declined for women but not for men."