Spouses’ Work-Family Biographies and Individualized Assets and Debts Within Married Couples

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  In Refereed Roundtable (60 min): Table 12: Economics in Families

Abstract

Prior research usually overlooks the way assets are shared within couples. Differentiating between sole wealth (assets or debts individuals solely own) and joint wealth (assets or debts individuals own jointly with their spouses) is substantial for understanding individuals’ economic well-being. The sole ownership of assets increases property rights and autonomy, whereas the sole ownership of debts increases economic dependencies. This study examines the distribution of the sole ownership of assets and debts within married couples in late adulthood in Germany. It further investigates how spouses’ work and family involvement influence the division of assets and debts among these couples. Using data from the German Socio-Economic Panel Study (SOEP; 2002, 2007, 2012, and 2017), I apply multinomial and fractional logit models to predict ownership structures and the share of spouses’ solely owned wealth in the household. Results indicate that the length in full-time employment is positively associated with investments in sole assets irrespective of gender. Spousal unemployment is positively associated with investments in joint assets. Men’s unemployment is positively associated with both spouses’ sole debts, pointing towards the economic burden couples have to bear. Re-married women are also more likely to hold sole debts than men, indicating that women aim at maintaining their financial autonomy after prior divorce experiences, whereas this cannot be found for re-married men.

Author

• Theresa Nutz