Relationship breakdown has economic costs: one household is split into two, and its income is also divided. The costs are disproportionately borne by women, who often lose more than half the household’s income yet retain the majority of the financial responsibility for children.

The negative financial shock of relationship breakdown is, however, rarely permanent. In the short term, separated women may benefit from social welfare policies and receive private transfer payments including child support. As time passes, if repartnering occurs this can aid the economic recovery process.

A recent analysis of the British Household Panel Survey (BHPS) and the Household, Income and Labour Dynamics in Australia (HILDA) Survey has revealed new insights into the interaction between institutional support, including welfare payments and child support rules, and repartnering as a way of mitigating the negative economic shock of relationship breakdown.