This chapter illustrates how the Coase Theorem can be applied to explain the outcome of a divorce in two different systems. In both cases, where the unhappy partner values the divorce at $5,000 and the happy partner values the marriage at $10,000, the equilibrium is “no divorce.” Now assume that the situation is reversed: the happy partner, who does not want a divorce, places a lower value on the marriage ($5,000). The unhappy partner, who wants a divorce, values the divorce at a higher value ($10,000). Applying the same concept, analyze the outcome of the marriage under two scenarios: “right not to divorce” and “right to divorce.”