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No-Fault Divorce and Rent-Seeking

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  • S. BRACKE
  • K. SCHOORS
  • G. VERSCHELDEN

Abstract

Couples filing for divorce in Belgium have the option to either opt for a no-fault divorce trajectory or a consensual trajectory. We analyse the determinants of divorce trajectory choice and of the resulting post-divorce transfers. The no-fault trajectory is more likely, if spouses are more specialised in either domestic or labour market production. This is consistent with a theory of divorce as rent extraction. Child support payments depend neither on the divorce trajectory nor on alimony transfers or relative incomes, but are driven by the payer's wage and the child(ren)'s residence. Partner alimony transfers are higher for no-fault unilateral divorces with pronounced self sacrifice.

Suggested Citation

  • S. Bracke & K. Schoors & G. Verschelden, 2010. "No-Fault Divorce and Rent-Seeking," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 10/681, Ghent University, Faculty of Economics and Business Administration.
    • Handle: RePEc:rug:rugwps:10/681
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    File URL: http://wps-feb.ugent.be/Papers/wp_10_681.pdf
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    References listed on IDEAS

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    1. Del Boca, Daniela & Ribero, Rocio, 1998. "Transfers in non-intact households," Structural Change and Economic Dynamics, Elsevier, vol. 9(4), pages 469-478, December.
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    1. Rent seeking in divorce
      by Economic Logician in Economic Logic on 2011-03-17 19:25:00

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    More about this item

    Keywords

    Divorce; Bargaining; Law and Legislation;
    All these keywords.

    JEL classification:

    • K36 - Law and Economics - - Other Substantive Areas of Law - - - Family and Personal Law
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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