Divorce and Matrimonial Property: Why Number of Divorce Cases Grows When Families Become Wealthier?

10 Pages Posted: 11 Jul 2009  

Euston Quah

Nanyang Technological University (NTU)

Shuntian Yao

Nanyang Technological University (NTU) - Centre for Research in Financial Services (CREFS)

Date Written: February 2009

Abstract

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.

Keywords: Matrimonial property, 50-50 division rule

JEL Classification: C0, K3

Suggested Citation

Quah, Euston and Yao, Shuntian, Divorce and Matrimonial Property: Why Number of Divorce Cases Grows When Families Become Wealthier? (February 2009). Available at SSRN: https://ssrn.com/abstract=1431727 or http://dx.doi.org/10.2139/ssrn.1431727

Euston Quah

Nanyang Technological University (NTU) ( email )

S3 B2-A28 Nanyang Avenue
Singapore, 639798
Singapore

Shuntian Yao (Contact Author)

Nanyang Technological University (NTU) - Centre for Research in Financial Services (CREFS) ( email )

Nanyang Avenue
Division of Applied Economics
Singapore 639798
Singapore

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