The Economic Consequences of Divorce in Germany: What Has Changed since the Turn of the Millennium?

Abstract

Our analysis of data from almost 30 waves of the German Socio-Economic Panel Study (SOEP) shows that the economic consequences of divorce are still more negative for women than for men despite increased female labour force participation and, correspondingly, increased numbers of dual earner households. After reviewing recent shifts in the institutional fabric and the social structure of the conservative German welfare state with respect to families and marriage, the empirical analysis investigates the economic consequences of a sample of 844 men and 1,006 women in five dimensions: child custody, support payments, housing, employment, and economic well-being. Change is measured by comparing data from before and after the turn of the millennium.Overall, the analyses show that the economic consequences of divorce are still more negative for women than for men after the turn of the millennium, although female labour participation has increased and the public child care system was expanded. Nevertheless, some signs of change become visible indicating that the gains and losses of marital disruption are not unilaterally distributed among the genders. That men may also depend on incomes of their spouses can be seen for the increasing number of dual earner households. Moreover, after the turn of the millennium, economic dependence on public transfers increased not only for women but also for men.

Marital Dissolution and Personal Wealth: Examining Gendered Trends across the Dissolution Process

“…Additional ongoing costs due to lower economies of scale and thus higher per capita expenses may lead to persistently increased financial pressure (Sørensen, 1994). Whereas separation requires at least one spouse to move out of the family home, budget constraints often force both spouses to eventually relocate to a more affordable dwelling (Bröckel & Andreß, 2015; Mulder, 2013).…”

“…To secure economic well‐being after separation, women may re‐enter the labor market or increase working hours (Tamborini, Couch, & Reznik, 2015). However, in light of substantial gender wage gaps, employment restrictions due to women's child care responsibilities, and insufficient support payments, women experience greater and more lasting income declines than men (Bayaz‐Ozturk et al, 2018; Bröckel & Andreß, 2015). As men's careers are less disrupted than women's, men's marital dissolution‐related income losses are minimal, with some studies even illustrating income improvements (e.g., Andreß et al, 2006; Bayaz‐Ozturk et al, 2018).…”

“…In January 2008, regulations for postdivorce alimony were further tightened and a stronger emphasis was put on the obligation to work. Whereas the duration of payments was less regulated prior to 2008, the duration of postdivorce alimony remains temporary and is commonly restricted to 3 years after childbirth unless an extension is granted (Bröckel & Andreß, 2015). Nonpayment or underpayment of alimony continue to be common for the majority of eligible spouses (Andreß et al, 2003).…”

“…Monetary child support must be paid by the nonresidential parent. Nevertheless, only a minority of residential parents receive child support from their ex‐spouse, and only half of all payments are sufficient, making non‐ and underpayment a substantial issue (Bröckel & Andreß, 2015). Single parenthood and noncompliance with child support payments disproportionally affects women's financial circumstances as children more commonly reside with mothers after separation and divorce (Statistisches Bundesamt, 2018).…”

Factors Pertaining To Rising Divorce Rate and Its Consequences on The Family Culture Of Pakistan: A Qualitative Study

“…Men, comparatively, are known to have lower commitment levels which after divorce are reduced even further. Studies also report that consequences of divorce are much worse for women as compared to men even though women participation at work has increased (Brockel & Jurgen Andreb, 2015). Divorced women are considered as social disgrace and become subject to public stigma as well as they tend to internalize self-stigma (Konstam, Karwin, Curran, Lyons, & Celen-Demirtas, 2016).…”