Australians are divorcing later in life and struggling to recover financially
One in three marriages end in divorce.
A new report reveals Aussie couples are getting divorced during "prime wealth-accumulating years", culminating in significant financial challenges for many years to come.
AMP's report For Richer, For Poorer: Divorce in Australia found one in three marriages end in divorce.
The report says the fallout from these breakups can drastically reduce savings and assets, stifle a person's ability to afford a home or accumulate adequate superannuation or provide favourable educational opportunities for their children.
The latest stats shows Australian couples are tying the knot later in life and staying married for longer.
However, many Aussies are divorcing later in life, during their mid-40s. Divorced parents aged 45-64 have 25% less assets than married parents, according to the report.
Superannuation balances are significantly lower for divorced parents than their married counterparts. Divorced mothers have 68% less super than married mums. Divorced fathers (45-64) have 60% less super than married dads, five years after their relationships have ended.
More than one-fifth of recently-divorced mums struggle to afford basics, such as school uniforms.
A family breakup also decreases a child's chance of obtaining university education by 6%.
In 2014, one fifth of children aged 25-44, whose parents were divorced when they were 14, left high school before graduating.
The report also found home ownership is a huge challenge for divorced parents. 40% of divorced mothers and 32% of divorced fathers are still renting, five years after their marriages have ended.
While divorce has little impact on a man's employment status, many female divorcees (14%) return to work, despite receiving 10% less remuneration than married women.
Tasmania has the highest number of divorcees (14.8%) in Australia, followed by Queensland (14.3%). New South Wales (10.8%) and Victoria (10.5%) have the lowest.
Divorced? Avoid the arguments and get organised using our financial checklist for the newly single.
- 4 migrants give their must-do tips for moving to Australia
- Taking out an Australian mortgage for the first time? Here are our top tips
- 5 must-know tips if you’re thinking about moving abroad
- 5 things you need to do if you’ve just moved to Australia
- Savings account or term deposit? Things to consider for 2023