Former reality television star Jody Claman of the defunct Real Housewives of Vancouver has been embroiled in a headline-making divorce case. Claman reports monthly expenses of about $50,000 – a year’s wages for many Canadians.
Wealthy or not, divorce deals a financial blow to all involved. The division of assets, expenditures for new living arrangements and legal fees are only some of the costs to personal prosperity. Most people know that marital breakdown is expensive and financially crushing. Few realize it can also have a long-term impact on personal income levels. Just a few longitudinal studies examining Canadian data have examined longer term implications of divorce on income.
Below is a summary of findings from various studies examining correlations between divorce and income. Research suggests that women have a particularly hard time when it comes to economic recovery after divorce, though some academics argue that current social and legal trends may be altering this gender disparity.
The bottom line: Divorce remains detrimental to economic prosperity for women, men and children.