This study examines the economic consequences of separation for men and women in the Netherlands and the sources of the sex differences in the economic consequences. Using panel data from 1984 to 1995, the results show that the economic consequences of separation are more severe for women than for men. Although public and private transfers reduce gender disparities, women still experience a decline of 46 per cent in total household income, whereas men experience a decline of 31 per cent. When the needs of the household are taken into account, the sex difference is larger. Men experience a small increase in adjusted household income, whereas women experience a decrease of 31 per cent. Multivariate analyses show that women do worse than men because they work fewer hours, have a lower level of education, and more often get custody of the children.