Women are likely to see their annual household income fall by an estimated 41 per cent in the first year following their divorce, compared to just 21 per cent for men, according to research from Legal & General Retail.
Opinium Research conducted research between 20th November to 4th December 2023, among a nationally representative panel of 2,750 UK adults who are divorced.
The disparity between men and women is caused by a number of factors, say L & G, one being that men are more likely to be the main breadwinner in families (70 per cent vs. 21 per cent of women), and commonly earn more. This presents a challenge as couples separate their finances and fund two separate households.
One in four women struggle financially post-divorce (24 per cent) compared to their male counterparts (18 per cent), leading to increased likelihood of worries about the cost of essentials (21 per cent vs. 13 per cent of men).
While men and women tend to agree that the division of their finances at the point of divorce is fair and equitable (53 per cent men and 46 per cent women), the research has found that many women may be signing over their rights to a key financial asset.
Despite the pressures on their finances, women are significantly more likely to waive their rights to a partner’s pension as part of a separation (30 per cent women vs. 17 per cent). This raises concerns about the ability of women who are divorcing to fund their retirement, due to a significant gap in pension wealth at the time of divorce.
According to the figures, women saved an average of £23,000 into their pension pot at the point of divorce, compared with £60,000 by men.
