Using a life-cycle model of household consumption and investment under family transitions, we investigate the long-run financial outcomes of divorces. We find divorce leads to a reduction in wealth, and the loss is larger for higher-educated women. Earlier fertility and a smaller parenthood...

While divorce laws are known to influence family behavior, empirical evidence of their effects on children remains scarce. I shed more light on this by evaluating the Swedish divorce law reform of 1974, which i) liberalized the existing divorce laws and ii) implemented a 6-month parental...