Property settlements and child support awards: do divorced parents make trade-offs?

This study examines the division of property and child support awards negotiated by parents who obtain divorces. Data from official court records in the state of Wisconsin are used to investigate the number and size of property settlements and the factors that determine how family property is distributed at divorce. The study investigates the degree to which divorce negotiations reflect a trade-off between property settlements and child support awards. It also explores the effects of property settlements upon womens and mens postdivorce economic well-being. It is found that although most divorce cases include some property settlement such settlements tend to have small monetary value. Nevertheless property settlements can have an important effect on the economic welfare of women and children after divorce. Hypothetical examples show that property settlements provide investment income of between 1/3 and 2/3 of yearly child and family support awards. Parents however do not appear to exchange support awards for a larger share of joint property. In general the value of property awarded to mothers who have sole custody of the children does not depend on whether or not they receive support awards. Property settlements do not appreciably diminish the difference between womens and mens incomes after divorce. (authors)