Losing a job is an important resource shock to a family, and it may be harmful to the stability of marriage. This paper aims to investigate the impact of a husband's displacement on the possibility of divorce. The sample we analyze is based on an unusual data set which is linked with Taiwan administrative data containing detailed information on unemployment and its causes. We can identify exogenous displacement by using firm closures. We find that a husband's displacement increases the possibility of divorce by 8.50 to 9.23 percent. The impact is more manifest for those who were displaced longer than 1 year, those who were displaced within 3 years, and those who have lower social economic status (lower education, and lower income).