It’s All About the Divorce Gap: Ending Isolation for Divorcing Women

Edna Gomez-Green of the Fresh Start Women’s Foundation (Photo credit: Fresh Start)

Divorce is often a difficult process, and it disproportionately leaves women struggling with financial challenges. As we covered in regard to MacKenzie Bezos’ settlement, after a divorce, men’s standard of living generally rises by about 33%, while women’s drops by about 20%. Other studies have shown that women’s income after divorce drops by an average of 41%. These stats outline the divorce gap, one of many overlapping economic gaps women continue to face, including the wage, debt, unpaid labor, funding, investing and “pink tax” (consumer pricing) gap.

The Divorce Gap

There are many reasons women can find themselves struggling after a divorce; some stop working to raise kids during marriage and then find it difficult to re-enter the workforce and earn adequately. Others take on full-time caregiving for the first time after a divorce, which can conflict with their career paths and keep them from making enough to support their families. Some women haven’t chosen or been able to invest independently for the future and find themselves without a safety net or backup plan. The other financial gaps all come into play. Women are generally paid less, have more debt, receive less funding, invest less and are charged more for products designed for them. And the unpaid labor gap is significant here; women often take on care giving, housekeeping and other crucial contributions to families and societies that are uncompensated.

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At $37 Billion, Did MacKenzie Bezos Get a Fair Divorce Settlement?

MacKenzie Bezos, author, philanthropist and founder of Bystander Revolution, a nonprofit focused on ending bullying through kindness and inclusion. (Photo Credit: Bystander Revolution)

And why does it matter? you ask. Why am I prying into the business of a private marriage on Philanthropy Women? Well, as it turns out, we now know that the answer to the question — did MacKenzie Bezos get a fair divorce settlement? — has huge implications for philanthropy. MacKenzie Bezos is one of the newest signatories of the Giving Pledge, committing to give away at least 50% of her assets while living.

Divorcing in a community property state like Washington, where all resources are considered jointly owned in a marriage, MacKenzie was eligible to get as much as $69 billion. Much of the talk before the Bezos divorce was final speculated that it could come out as a 50/50 split, with MacKenzie getting an equal amount. The actual number — $37 billion — is quite a bit smaller than that. Of the $137.2 billion estimated net worth of Jeff Bezos, $37 billion is only 26.9% of that. A far cry from a 50/50 split.

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