The Long Shadow of Divorce: Wealth Inequalities in Old Age

Jornt Mandemakers , NIDI

Rising divorce rates in the second half of the twentieth century have produced an unprecedented share of ever-divorced elderly. This study examines the long-term financial consequences of divorce among Dutch individuals aged 70–84, focusing on wealth percentile and the presence of a financial buffer (=€10,000 in non-housing wealth). Using comprehensive Dutch population registry data from 2013–2023, we distinguish divorces before age 50 from those between 51–64, comparing ever-divorced individuals to those who remained married/widowed. Results show that divorce has persistent negative effects on wealth. Individuals divorced before age 50 rank, on average, 14 points lower in the wealth distribution than continuously married peers; divorce between 51–64 is slightly less detrimental. Divorced elderly are also less likely to maintain a financial buffer. Key mechanisms explain much of this disadvantage: divorced individuals are less likely to re-partner, less likely to own a home, and more often reside in less affluent regions. Apparent disparities by sex and education are substantially reduced when these mediating factors are considered, highlighting the importance of partnership and housing trajectories in shaping post-divorce wealth. This study contributes by (1) comparing early- and later-life divorces, (2) leveraging population-wide registry data for robust analyses of wealth inequalities, and (3) identifying mechanisms that drive financial disparities in old age. Findings demonstrate that divorce—particularly early in life—casts a long shadow on wealth accumulation, underlining the enduring impact of marital history on economic vulnerability among the elderly.

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 Presented in Session 97. Economic and Health Inequalities after Union Dissolution