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Tuesday, October 2 • 3:30pm - 4:20pm
F3b - The Effect of Alimony on Savings Behavior

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Alimony, or spousal support is a transfer payment from one divorced spouse to another. Ostensibly, this is to assist in meeting the needs of a dependent spouse during post-divorce life. In general, dependent spouses who receive alimony should have more of an ability to save than those dependent spouses not receiving alimony. Conversely, those paying support may be less likely to save than those supporting spouses not paying support. Using data from the Survey of Consumer Finances, the present research examines whether the presence of alimony is associated with an increased likelihood to save, and whether those paying alimony is associated with a decreased likelihood to save. Results suggest receiving alimony reduces propensity to save, and paying alimony has no effect.

Author(s): Michael Kothakota, Stuart Heckman


Michael Kothakota

Student, Kansas State University

Tuesday October 2, 2018 3:30pm - 4:20pm CDT
Michigan 1C

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