The Divorce Gap: Why Women’s Income Plummets After Divorce — and What UK Law Can Do About It
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Key Takeaways:
- Women’s income halves after divorce — while men’s falls by only 30%, leaving many women struggling to cover essentials and rebuild financial stability.
- Pensions are often ignored — only 13% of couples include them in settlements, putting women at serious risk of poverty in retirement.
- Legal advice is essential — full financial disclosure and pension sharing orders can help close the divorce gap and protect long-term security.
Divorce doesn’t just end a marriage — for many women, it also slashes their financial stability.
New data from Legal & General (L&G) paints a stark picture: in the year after a divorce, women’s household income falls by half, compared to just a 30% drop for men. That financial freefall can ripple into every part of life — from paying for essentials to planning for retirement.
Divorce and the gendered financial fallout
The research, marking three years since no-fault divorce became law in England and Wales, highlights how separation continues to hit women harder and longer.
- 24% of women say they’re financially vulnerable after a split, compared to 16% of men.
- Nearly one in five women (19%) struggle to cover essentials like food, rent and bills.
- 63% of women say losing shared housing and utilities costs is a major challenge, compared with just 39% of men.
While both partners face financial strain, women are statistically more likely to have entered the marriage earning less — and to have spent years balancing work with unpaid caregiving. When the partnership ends, that unpaid labour no longer has financial protection.
The hidden cost of caregiving
L&G’s report found that over half (51%) of divorces involve women who were financially dependent on their husbands, with only 24% being the primary earners. After separation, nearly one in five women return to work, and a quarter refocus their careers — yet caregiving continues to block full economic recovery.
Women are:
- Twice as likely to reduce working hours post-divorce (14% vs. 7% of men).
- Twice as likely to struggle balancing childcare with work (19% vs. 9%).
For many mothers, this means a cycle of part-time work, limited promotion opportunities and reduced pension contributions — creating what experts now call the “divorce gap.”
The divorce gap extends into retirement
The problem doesn’t end when working life does. The gender pension gap — women retiring with significantly less saved than men — is compounded by divorce.
Only 13% of divorcing couples consider pensions in their financial settlement, even though pensions can be one of the most valuable marital assets. Shockingly, 28% of women waive their rights to their partner’s pension altogether, compared to 17% of men.
This leaves many women entering later life with a smaller pension pot, fewer savings, and a higher risk of poverty in retirement. Unsurprisingly, 13% of divorced women worry about the financial impact of retiring alone, versus just 8% of men.
Why does this keep happening?
There are three main drivers behind the divorce gap:
- Unequal earning power.
Decades of gender pay gaps, maternity breaks and unpaid care work mean women often enter divorce earning less — and exit with fewer assets.
- Lack of pension awareness.
Pensions are often ignored in settlements because they feel distant or complex, especially when immediate needs like housing take priority.
- Caregiving penalties.
After divorce, women continue to shoulder more childcare, reducing work hours or flexibility — and limiting long-term earning growth.
How the law can (and should) help
While UK family law aims to achieve fairness, the system can unintentionally perpetuate gender inequality when financial disclosure and advice fall short.
Under the Matrimonial Causes Act 1973, courts must consider all marital assets — including pensions. But in many amicable or mediated divorces, couples reach informal settlements without full disclosure or legal advice, meaning pensions go unvalued or unshared.
Pension sharing orders exist precisely to close this gap, allowing part of one spouse’s pension to be legally transferred to the other. Yet, according to recent figures, fewer than 15% of divorces include one.
At Parachute Law, we routinely advise clients — especially women — to ensure that pensions are included in the financial disclosure process. They are not optional extras. They are part of your long-term financial safety net.
What women can do to protect themselves
If you’re facing divorce, here are practical steps to reduce the long-term financial impact:
- Get full financial disclosure.
Ask for full details of all assets, including pensions, investments, property, savings and business interests.
- Request a pension valuation.
Ask for a Cash Equivalent Transfer Value (CETV) for every pension held by either party — this figure helps calculate fair sharing.
- Consider a pension sharing order.
These orders ensure that a percentage of one partner’s pension is transferred to the other, protecting future income.
- Rebuild your career with support.
If you’ve stepped back from work, explore retraining or flexible work options. Childcare grants, return-to-work schemes and career coaching can help.
- Create a realistic post-divorce budget.
Account for higher living costs, debt repayments and savings contributions. Consider speaking to a financial planner who understands divorce dynamics.
- Update your estate planning.
After separation, review your will, life insurance and pension beneficiaries — your ex may still be listed.
The bigger picture: equality after marriage
Divorce reform in the UK has focused on reducing conflict — rightly so. But as no-fault divorce becomes the norm, the next challenge is financial fairness.
Without a deeper understanding of how unpaid care and career breaks shape financial outcomes, women will continue to exit marriages poorer — and stay that way for decades.
The “divorce gap” is not just about losing income; it’s about losing long-term security. Ensuring women leave with their fair share of assets, including pensions, is not generosity — it’s justice.
Parachute Law can help
At Parachute Law, we help clients navigate divorce with a clear financial strategy. Our solicitors specialise in:
- No-fault divorce and financial settlements
- Pension sharing orders and valuation support
- Spousal maintenance and child support
- Asset tracing and full financial disclosure
- Wills and estate planning after divorce
Whether you’re starting the process or reviewing an old settlement, we’ll help protect your finances and secure your future.
Related Articles:
The Common Mistake People Make When Divorcing – and How to Avoid It
Interim Maintenance: Financial Support During Your Divorce
Divorce and Jurisdiction: Why the Country You Divorce In Can Shape Your Financial Future
