Financial consequences of relationship dissolution: A longitudinal comparison of formerly married and unmarried cohabitating men and women

The aim of this article is twofold. First, we examine whether there are differences between ex-cohabiting and former married men and women in their income change after relationship dissolution. Second, we focus on differences between divorced and ex-cohabiting men and women in coping with the changed income situation after relationship dissolution. We look at two coping strategies: increasing one’s labor-market participation and finding a new partner. We look at differences in the effectiveness of applying those strategies between separated and divorced women and men. After controlling for compositional differences, there are no differences in the effectiveness of increasing the number of hours worked between divorced women and ex-cohabiting women. Divorced women gain more financially by finding a new partner than ex-cohabiting women. There are no differences between ex-cohabiting men and divorced men in effectiveness of both coping strategies.