IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Divorce Property Division and the Decision to Marry or Cohabit

  • Fisher, H.

This paper presents a model of the choice between marriage and cohabitation for a couple who have decided to form a relationship. The model is used to analyse the implications of changing from a title based division of property on divorce to an equal sharing regime. There are two opposing effects. In line with popular expectations, the change to an equal sharing regime prevents some wealthy individuals from marrying since they risk losing half of their assets in the event of divorce. Offsetting this, the equal sharing property division regime enables cooperative investments to be made in marriage, and so increases the value of marriage relative to cohabitation for some couples. Overall the impact on the marriage rate is ambiguous, although the rate is most likely to increase where it is more difficult to make cooperative investments due to unilateral divorce laws, and where couples are more similar to each other, reducing their cost of divorce.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.econ.cam.ac.uk/research/repec/cam/pdf/cwpe1101.pdf
Download Restriction: no

Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 1101.

as
in new window

Length:
Date of creation: 18 Jan 2011
Date of revision:
Handle: RePEc:cam:camdae:1101
Contact details of provider: Web page: http://www.econ.cam.ac.uk/index.htm

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Rainer, Helmut, 2007. "Should we write prenuptial contracts?," Munich Reprints in Economics 19819, University of Munich, Department of Economics.
  2. Chiappori, Pierre-André & Fortin, Bernard & Lacroix, Guy, 2001. "Marriage Market, Divorce Legislation and Household Labor Supply," Cahiers de recherche 0103, Université Laval - Département d'économique.
  3. Niko Matouschek & Imran Rasul, 2008. "The Economics of the Marriage Contract: Theories and Evidence," Journal of Law and Economics, University of Chicago Press, vol. 51(1), pages 59-110, 02.
  4. Halla, Martin, 2009. "The Effect of Joint Custody on Marriage and Divorce," IZA Discussion Papers 4314, Institute for the Study of Labor (IZA).
  5. Eric Langlais,, 2010. "On unilateral divorce and the “selection of marriages” hypothesis," Recherches économiques de Louvain, De Boeck Université, vol. 76(3), pages 229-256.
  6. Clark, Simon, 1999. "Law, Property, and Marital Dissolution," Economic Journal, Royal Economic Society, vol. 109(454), pages C41-54, March.
  7. Wolfers, Justin, 2003. "Did Unilateral Divorce Laws Raise Divorce Rates? A Reconciliation and New Results," Research Papers 1819, Stanford University, Graduate School of Business.
  8. Libertad González Luna & Tarja K. Viitanen, 2006. "The effect of divorce laws on divorce rates in Europe," Economics Working Papers 986, Department of Economics and Business, Universitat Pompeu Fabra.
  9. Greg J. Duncan & Saul D. Hoffman, 1985. "Economic Consequences of Marital Instability," NBER Chapters, in: Horizontal Equity, Uncertainty, and Economic Well-Being, pages 427-470 National Bureau of Economic Research, Inc.
  10. Betsey Stevenson, 2006. "The impact of divorce laws on marriage-specific capital," Working Paper Series 2006-43, Federal Reserve Bank of San Francisco.
  11. Giulio Fella & Paola Manzini & Marco Mariotti, 2002. "Does Divorce Law Matter?," Working Papers 454, Queen Mary University of London, School of Economics and Finance.
  12. Stéphane Mechoulan, 2006. "Divorce Laws and the Structure of the American Family," Working Papers tecipa-245, University of Toronto, Department of Economics.
  13. Vicky Barham & Rose Anne Devlin & Jie Yang, 2006. "Public Policies and Private Decisions: The Effect of Child Support Measures on Marriage and Divorce," The Journal of Legal Studies, University of Chicago Press, vol. 35(2), pages 441-474, 06.
  14. Leora Friedberg, 1998. "Did Unilateral Divorce Raise Divorce Rates? Evidence from Panel Data," NBER Working Papers 6398, National Bureau of Economic Research, Inc.
  15. Chiappori, Pierre-André & Iyigun, Murat & Weiss, Yoram, 2007. "Public Goods, Transferable Utility and Divorce Laws," IZA Discussion Papers 2646, Institute for the Study of Labor (IZA).
  16. Alberto Alesina & Paola Giuliano, 2006. "Divorce, fertility and the shot gun marriage," Harvard Institute of Economic Research Working Papers 2117, Harvard - Institute of Economic Research.
  17. Imran Rasul, 2006. "Marriage Markets and Divorce Laws," Journal of Law, Economics and Organization, Oxford University Press, vol. 22(1), pages 30-69, April.
  18. Smith, Ian, 1997. "Explaining the Growth of Divorce in Great Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 44(5), pages 519-44, November.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:cam:camdae:1101. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Howard Cobb)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.