Divorce/separation, especially in families with children, lowers the economic stability of each spouse and increases the chance of falling below the poverty line. Beyond the financial harm, divorce/separation damages the social capital of each spouse, due to the fact that in many cases each spouse's friends remain in contact only him or her.
A divorced/separated status is a variable that distinguishes between those who are under the poverty line and those who are not, and those who have risen higher on the social ladder compared to their parents and those who did not, in all population groups except Arab women.
Forste, R., & Heaton, T. B. (2004). The divorce generation: Well-being, family attitudes, and socioeconomic consequences of marital disruption. Journal of Divorce & Remarriage, 41(1-2), 95-114.
Braver, S. L., Shapiro, J. R., & Goodman, M. R. (2006). Consequences of divorce for parents. Handbook of divorce and relationship dissolution, 313-337.
Uunk, W. (2004). The economic consequences of divorce for women in the European Union: The impact of welfare state arrangements. European Journal of Population/Revue europeenne de demographie, 20(3), 251-285.
Individuals from disadvantaged backgrounds
The economic effects of divorce/separation are more detrimental for individuals from disadvantaged backgrounds.