Poverty following divorce or the death of a spouse: gender disparities and economic vulnerability

Difficulty of Avoiding Poverty After Divorce or the Death of a Spouse

Poverty following a divorce or the death of a spouse is a reality for many individuals in today's world and this is particularly true when there are minor children and when the spouse left behind following death or divorce has limited education and no work-related skills. This work intends to examine the descent into poverty experienced by individuals following the death of a spouse or divorce from their spouse.

Poverty in the Aftermath of Divorce

The work of Gadalla (2008) entitled: "Gender Differences in Poverty Rates After Marital Dissolution: A Longitudinal Study" reports that data released by the Canadian Survey of Labor and Income Dynamics study were utilized in conducting an examination of rates of "entering low income for divorced and separated men and women from 1999 to 2004" and states that "one in 5 women entered low income in the breakup year as compared with 1 in 13 men. About one quarter of women remained in low income for at least 1 year compared with 9.8% of men. Most divorced and separated women who entered low income did so during the breakup year and remained in low income for 1 year. However, women less than 40 years old were at higher risk of persistent poverty." (Gadalla, 2008)

The work of David J. Cheal (1996) entitled: "New Poverty" relates that the risk of poverty among women "has often depended heavily on the nature of their relationships with men. When males are by convention breadwinners for their families, it is only through relationships with men that women can gain access to a regular income." Cheal relates that even in cultures and societies where women are generally employed, the earnings of women are generally so far below the wages of men, and often doing the same job, that advantages to sharing in the earnings of men are significant in nature. This is even truer when those women have children.

The work of Block (2000) entitled: "Gold Years Bleak for Divorcees" states that divorced women were shunned by society in Victorian times and were often forced to "spend their later years alone." However, in today's world divorced women "suffer a different fate… Among low-income retirees, they are the poorest of the poor. According to federal statistics, 22% of divorced female retirees live in Poverty vs. 18% of widows and 20% of women who never married. And the situation could get much worse. The number of retirement-age women will increase by 84% in the next 20 years to 9.6 million, according to U.S. Census figures. Meanwhile, the divorce rate remains stuck at about 48%."

This problem has interestingly been addressed and is reported in the work of Collie (1999) entitled: "D.I.V.O.R.C.E? I.N.S.U.R.E!" who states that a scheme has been devised to protect women "from falling into a poverty trap during or after divorce action has been set up by a new city firm. The plan, the first to target non-payment of maintenance, provides finance for the legal fees involved in fighting family and matrimonial cases." (Collie, 1999)

There are stated to be approximately 1 million women in the UK who are divorced added to another 150,000 each year that passes. Of these 2/3 have children. Howard Timmis of Edward Howard Insurance Services, stated to have originated DMI along with Lloyds underwriters, the Kiln group states as follows:

"The evidence shows that women and children are more at risk of poverty after divorce than men and, on average, suffer quite substantial declines in household income The situation worsens dramatically if the former husband suddenly can't, or simply won't, pay the maintenance. Women whose ex-husbands suffer sickness, redundancy or disability are forced onto state benefit unless or until they are able to support themselves as are those whose ex-partners die. Women whose financial lifeline is deliberately cut off are in the same predicament, as well as having to rely on legal aid to get their maintenance orders enforced." (Cheal,1996 )

Cheal states that there are findings of government agencies that support these stated facts and in fact that the Legal Aid Board recently published a report stating that in excess of "70% of the maintenance cases which it funds are brought by women." (1996) Even more alarming according to Cheal are the figures that the Child Support Agency released which reveals that CSA intervention is "mandatory wherever a lone parent claims benefit -- few that half result in the full level of child maintenance being paid. More than 30% of absent parents pay nothing at all toward the upkeep of their offspring." (Cheal, 1996)

Timmis cites "loose verbal agreement[s]" concerning financial support following a divorce to be one reason that women come out so horribly in divorce situations financially. The DMI insurance package is reported to "cover for up to two years' maintenance payments in the case of an ex-husband's accident, sickness or disability, and a lump sum payment of twice the annual amount of maintenance in case of his death. In the case of involuntary unemployment, the policy allows for up to 12 months maintenance payments." (Cheal, 1996)

Stated to be the most significant aspect of the DMI is the payment of "…up to pounds 12,000 in legal costs and expenses in any action seeking enforcement of a maintenance order. In the event of non-payment, the wife will be able to instruct the solicitor of her choice to take immediate action." (Cheal, 1996)

Summary and Conclusion

Whether a woman loses her spouse to divorce or to death the chances that the woman will ascend into a life of poverty are greatly increased as compared to women who do not divorce or lose their spouse to death. It is interesting to note that business and financial planners as well as insurance programs are beginning to address the financial problems the individual faces following a divorce of the death of their spouse. These are factors that any individual should receive truthful and candid counseling on from those in the position to relate this information such as attorneys, bankers, insurance agents, and other business and financial professionals in today's society.

With some good advice and proper planning it is very possible for many, if not all women who go through a divorce or who lose their spouse to death to make plans for their retirement and their lives following divorce to mitigate some of the difficulties presently being experienced by these individuals and ultimately to lay a firm financial foundation for their future and thereby avoiding a descent into a life of poverty.