Divorce and Matrimonial Property: Why Number of Divorce Cases Grows When Families Become Wealthier?
Nanyang Technological University (NTU)
Nanyang Technological University (NTU) - Centre for Research in Financial Services (CREFS)
In this paper we study the relationship between the number of divorce cases and the law of 50-50 divorce asset division rule. A simple mathematical model is established and analyzed. Our main result states that, as families become wealthier, the 50-50 asset division rule will provide stronger divorce incentive for the homemakers and thus increase the number of divorce cases. Our conclusion is well matched by observations in China.
Number of Pages in PDF File: 10
Keywords: Matrimonial property, 50-50 division rule
JEL Classification: C0, K3
Date posted: July 11, 2009