Divorce is not only emotionally challenging but can also be financially devastating for many couples. We’ll explore key statistics about divorce, as well as offer guidance on how to recover financially from this life-altering event.
While it’s often said that half of all marriages end in divorce, this figure isn’t entirely accurate. According to recent data from Forbes, only about 43% of first marriages dissolve. However, the likelihood of divorce increases significantly with subsequent marriages—60% of second marriages and a staggering 73% of third marriages end in divorce.
These numbers highlight a reality many face: marriage is challenging, and subsequent marriages often carry even more financial and emotional baggage.
The financial impact of divorce is substantial. On average, couples spend $7,000 to dissolve their union, though contested divorces can take up to a year to finalize and cost significantly more. Beyond legal fees, divorces tend to disrupt living standards, particularly for women. After a “gray divorce” (involving individuals 50 years or older), women experience a 45% decline in their standard of living, while men face a 21% reduction. This gap is due to factors such as career sacrifices women often make and the persistent gender wage gap.
You might think financial problems are the leading cause of divorce, but they’re not. The most common reason cited for divorce is a lack of commitment, accounting for 75% of cases. Infidelity comes in second at 60%, followed by excessive arguing (58%) and financial issues (38%).
Divorce can also have a surprising effect on long-term health. Divorced individuals, particularly men, face a higher mortality rate than their married counterparts. The rate of early death for divorced men is 1,772 per 100,000 people, compared to 1,095 for divorced women. Married people generally fare better health-wise, with a mortality rate of just 779 per 100,000.
One unexpected statistic is that having divorced friends increases your own risk of divorce by 75%. Sociologists refer to this as “social contagion,” where the behavior of those around you can influence your own decisions. If a close friend speaks positively about their newfound freedom post-divorce, it may plant a seed for those already on the fence about their marriage.
Divorce can be overwhelming, both emotionally and financially. If you or someone you know is going through this, Sanchez Wealth Management has a dedicated team ready to guide you through your financial decisions and help secure your future. We are here to assist you in navigating this difficult time with a clear financial plan.
Resources
Bieber, C. (2024) Revealing divorce statistics in 2024, Forbes. Available at: https://www.forbes.com/advisor/legal/divorce/divorce-statistics/ (Accessed: 09 September 2024).