Women’s income typically drops 50% in the year after divorce, finds L&G

Women’s income typically drops by 50% in the year after divorce – compared to a 30% fall for men – according to new research from Legal & General (L&G).

Published to mark three years since the introduction of no-fault divorce in the UK, the findings pointed to the disproportionate economic hit women take following separation, with longer-term consequences for their financial wellbeing and retirement.

Nearly one in four women (24%) reported struggling financially after divorce, compared to just 16% of men.

Almost twice as many women (19%) as men (10%) found it difficult to meet essential living costs, with 63% citing the loss of shared housing and utility costs as a key challenge – compared to 39% of men.

The report also highlighted how divorce often forces women to rethink their careers, with one in five returning to work post-divorce and 24% using the opportunity to refocus on their professional life.

Yet many face barriers in doing so as women are twice as likely as men to cut their hours due to caring responsibilities and are more likely to struggle balancing work with childcare with 19% of them struggling in comparison to 9% men.

Over half of divorces involve women who were financially dependent on their partners, while only a quarter were the main breadwinners.

Despite this, pensions – one of the most significant assets in a household – are often left out of divorce settlements.