Women accept secondary income earner role at their financial peril

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Women accept secondary income earner role at their financial peril
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.Jess_Irvine: Many Australian couples have fallen back on traditional roles during this pandemic about how best to divide paid and unpaid work

COVID lockdowns have exposed the gender fault lines that still run deeply through Australian families. Maybe dad’s set up his home office in the spare bedroom, while mum works at the kitchen table near the kids.

Without explicitly discussing it – or sometimes even realising it – many Australian couples have fallen back on traditional tropes during this pandemic about how best to divide paid and unpaid work. Their report calls for a complete overhaul of parental leave, boosting the maximum available to 26 weeks from the current 20 weeks. Leave should be split into six weeks of “use it or lose it” leave for each parent, plus 12 weeks to share between them. Couples where both parents opt to use up their full six weeks should be granted an additional two-week bonus leave.

Of course, financial necessity will keep many mums working, particularly at the lower end of the income distribution. But in marriages that end up in divorce, the financial consequences can be dire for women. Of course, divorce settlements seek to factor in the relative contributions from partners in both paid and unpaid work to arrive at an equitable division of financial assets.But human capital is often the biggest asset we own. Our ability to generate income from our skills and know-how is an important contributor to living standards pre and post-retirement. And that can be harder to quantify.

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smh /  🏆 6. in AU

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