EconPapers    
Economics at your fingertips  
 

Divorce Property Division Laws and the Decision to Marry or Cohabit

Hayley Fisher ()

Journal of Law, Economics, and Organization, 2012, vol. 28, issue 4, 734-753

Abstract: This article presents a model of the choice between marriage and cohabitation that is used to analyze 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 equal sharing discourages some wealthy individuals from marrying since they risk losing half of their assets in the event of divorce. Offsetting this, equal sharing property division induces efficient investment in marriage, increasing the value of marriage relative to cohabitation for some couples. Overall, the impact on the number of marriages relative to cohabitations is ambiguous, although there will be more marriages where it is more difficult to invest, and where couples are more similar to each other. The Author 2011. Published by Oxford University Press on behalf of Yale University. All rights reserved. For Permissions, please email: journals.permissions@oup.com, Oxford University Press.

Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1093/jleo/ewr002 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:jleorg:v:28:y:2012:i:4:p:734-753

Ordering information: This journal article can be ordered from
http://www.oup.co.uk/journals

Access Statistics for this article

Journal of Law, Economics, and Organization is currently edited by Pablo T. Spiller

More articles in Journal of Law, Economics, and Organization from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().

 
Page updated 2020-11-05
Handle: RePEc:oup:jleorg:v:28:y:2012:i:4:p:734-753