New research from Legal & General (L&G) has revealed a stark financial divide between men and women in the aftermath of divorce, with women’s incomes falling by half on average in the year following a separation, compared to a 30% drop for men.
The findings come as the UK marks the third anniversary of the introduction of no-fault divorces, a legal reform intended to make separation simpler. However, the data shows that for many women, divorce brings lasting financial strain, particularly when it comes to managing everyday costs and planning for retirement.
According to the study, one in four women (24%) report struggling financially after divorce, compared to just 16% of men. The burden of essential living costs also weighs more heavily on women, with 19% saying they struggle to meet basic expenses like food and utilities—almost double the number of men (10%) who said the same.
The research highlights the challenges of living alone, with 63% of women citing the loss of shared household expenses as a financial hurdle, compared to 39% of men.
CAREER DISRUPTION AND CARING RESPONSIBILITIES PERSIST POST-DIVORCE
The financial impact of divorce is compounded by career-related challenges, particularly for women. In over half of divorces (51%), the woman was financially dependent on her partner during the marriage. For others, divorce becomes a pivot point—one in five women (19%) return to work, and 24% use the opportunity to refocus on their careers.
However, ongoing caring responsibilities remain a significant barrier. Women are twice as likely as men to reduce their working hours after divorce (14% vs. 7%), and they are more likely to report difficulties balancing childcare with employment (19% vs. 9%).
LONGER-TERM IMPACT ON RETIREMENT SECURITY
The study also finds that the financial effects of divorce often extend into retirement. 13% of women express concern about retiring alone, compared to 8% of men. A major factor in this is the widespread overlooking of pensions during divorce settlements. Despite pensions often being one of the largest assets in a marriage, only 13% of divorcing couples consider them when dividing finances.
The implications fall disproportionately on women, who typically retire with smaller pension pots due to the gender pay gap, time out of work for caregiving, or part-time roles. Nearly a third of women (28%) waive their rights to their partner’s pension, compared to 17% of men.
FINANCIAL ADVICE AND PLANNING KEY TO MITIGATING THE DIVORCE GAP
Lorna Shah, managing director of retail retirement at L&G, said the findings underscore the long-term risks women face when separating from a partner: “Women often face greater financial challenges after a divorce and the effects can last well into retirement. This is in part because women are still far more likely to pick up the majority of childcare and broader caring responsibilities, both during and after a marriage.
“When dividing finances, it’s important to look at everything, including pensions, which are often overlooked but can be a major asset and, if possible, to take proper financial advice. This is especially important for women, who may have taken career breaks, or worked part-time to support their partner’s career, leaving them with smaller pension savings of their own.”
L&G has introduced a financial health check tool to support those navigating separation, with a focus on planning for the future and improving long-term financial resilience.
