This article reviews the evidence pertaining to the financial impact of divorce on children and their families. While there is some variance as to the degree of change, the preponderance of evidence suggests that women and children experience substantial financial declines upon divorce while divorced men's relative income remains stable or even increases. Given this decline in women and children's economic status, the impact of public assistance programs is next considered followed by a discussion of child support and property settlements. The authors then present a discussion of roadblocks to economic recovery and recommend policies to improve the financial status of divorced mothers with children.