The Effects of Divorce on the Distribution of Wealth
High alimonies were not restricted just to the celebrities. When women in Europe learnt about the divorce laws in the UK that favoured them, they tried to shift their divorces cases here. Hence, the high alimonies started to shift the wealth distribution in the country and some even consider the country as a divorce hub of Europe.
Statistical Findings
A number of surveys are conducted to study the influence of divorce on the wealth distribution in the country. The survey conducted by Datamonitor has revealed a lot of interesting information. According to the survey, the women's wealth increases five times greater than the rate of increase of a man's wealth. That is, in the past eight years, women's wealth has increased by about 53.9% while men's wealth has gone up just by 9.2%.
Also, nearly 50% of millionaires in the UK are now women. The major reasons that contributed to the increase in women's wealth are the increasing divorce rates apart from other factors such as inheritance and the wealth earned through business.
Reasons behind Huge Settlements
Survey conducted by Grant Thornton reveals that in 2005 around £1 million was paid to women towards settlement out of which 53% of the settlement amount went to non-working wives.
In these days where people talk about equality, why do most of the judgements regarding divorce and settlements favour women? It could be due to one of the following reasons:
1. In the best interest of a child, the custodial parent is most of the times a woman. Although, the father pays for child support, it can cover only the basic expenses for the child. Hence, in order to compensate for her huge responsibility and provide sufficient money so that she could afford a comfortable life to the children to meet all their wants, judge agrees for huge settlements demanded by a woman.
2. A woman has difficulties in continuing with her professional life when she has a child. A lot of companies might not even sanction sufficient period of absence to a woman during this period. Hence a lot of women forfeit their jobs to take care of the children. Since the marriage has subsequently led to the ruining of a woman's career, a lot of judges feel it is fair that a man needs to provide sufficient settlement so that she can take care of herself after the divorce even without a job.
3. Infidelity by men is one of the main reasons for breakup of marriages in the UK. Hence huge settlements are considered as a compensation for breaking a woman's trust and happiness.
4. The judge presiding over the case might be a man from a traditional background who believes that it is a man's responsibility to a woman and makes him pay huge alimony for the same.
Divorce Rate Vs Wealth Distribution
With divorce rates going high, the gap between the male and female millionaires is narrowing. In 1998, men had £2.71 million, while the wealth among women amounted to £1.28 million. However, in 2006, total assets owned by men amounted to £2.96 million while women's assets totalled to £1.97 million. Also, number of women with high net worth outnumbered men in 2005.
With over 50% of marriages in the UK ending in a divorce, the women are expected to grow richer than the men within a few years of time.
Is this Fair?
In the UK, a man is expected to support a woman even after the divorce. She can even claim a share of his past or future earnings. Although women and lawyers are happy with these deals, most of the men are naturally unhappy. They feel it is unfair for a woman to claim a share of his hard-earned money, when she does not have any contribution towards it.
Men also question, how women can talk about feminism and equality yet, when the subject of settlement crops up, and try to convince that they require assistance to take care of their needs and hence expect to be treated differently.
When men want these divorce laws to be revised, women feel that current laws can help to uplift their condition. So, even as this argument continues, there are more women who are getting richer in this country through their divorce settlements.
James Walsh is a freelance writer and copy editor. For more information about using online services to get a Divorce see http://www.quickie-divorce.com
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