Abstract
In the absence of transaction costs, the divorce decision is invariant to legal rules on post-divorce asset allocation. This article introduces a one-sided inequity aversion model to show that property division laws can have efficiency as well as distributive consequences. When divorce is a credible threat, aversion to inequity may prevent spouses renegotiating their marriage to avoid an inefficient marital dissolution. Contemporary trends towards greater equality in property division can be interpreted in terms of their beneficial efficiency effects in addition to standard distributive concerns.
Full Text 
Sign-in/Register to access full text options
Sign-in/Register to access full text options 
Published version (
Free)
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
