Studies about divorce have been thoroughly discussed, especially about the impact or the cause of the action. The common studies about the impact of divorce are uniform, while studies about the determinant of divorce are likely to have differences between countries, especially in Indonesia. Altough there are many studies about determinant of divorce, only a few economic studies exist.  We examine the cause of divorce, focusing in the impact of risk aversion and decision whether to divorce or stay married. To implement the model empirically, we use data for married men and women from Indonesian Family Life Survey 2007 and 2014. The risk aversion is elicited from hypothetical gambling questions from Indonesian Family Life Survey 4 from 2007. Maximum Likelihood Estimation is used to estimate the logit model. This study explains several factors that cause divorce in Indonesia, especially the impact of risk aversion on decicion of divorce.  The result is the more risk averse explains the decision to stay married, especially for men.

Keywords: divorce, marital instability, risk aversion.