More than one in four UK adults have fallen into debt after a relationship breakdown, research by a leading family law body has found.
A survey commissioned by Resolution gathered the experiences of 1,077 British adults who had gone through separation from a long-term cohabiting relationship or divorce, plus 303 who had separated and had children. It found that:
- 28 per cent had turned to loans, an overdraft or increased credit card debts as a direct result of relationship break-up.
- 16 per cent had either asked for or been offered financial help from a friend or family member.
- 26 per cent had to move in with a family member or friend following a split.
- 36 per cent of separated or divorced parents have had to take out a loan or go into debt to deal with the financial strain caused by separation or divorce
- 21 per cent of separated or divorced parents had to turn to others for financial help, as opposed to 14 per cent of childless adults.
Resolution chair Jo Edwards said: “Too many people enter into a divorce or separation process without a full understanding of the financial consequences
“Separation often causes huge financial pressures: finding two new homes, furnishing those homes, perhaps wanting to buy a second car, all from a finite pot of capital, not to mention the legal costs associated with divorce; and in income terms, having the same amount of income available to the family whilst potentially doubling the bills because of living in separate homes.”
Resolution promotes a non-confrontational, constructive approach to resolving family issues, which includes supporting couples to work together to agree a fair financial outcome when separating rather than relying on the courts.
Ms Edwards added: “As horrendous as it might sound to sit down with your ex and talk about how you’re going to manage your separation, it actually leads to a better end result for the vast majority of separating couples.
“Resolution members… can help couples explore their options for separation that help them avoid taking on debt in order to start a new life.These options include out of court dispute resolution processes such as mediation, collaborative law and arbitration, which can help people to find a financial outcome that’s fair for both of them, without the potentially huge costs and stress of going to court.”
“Divorce and separation are always traumatic, but by choosing the right process people can lessen the pain, for themselves and for their families; and look ahead more quickly to life after divorce.”
Surjit Verdi, said: “When a marriage breaks down, reaching an agreement on financial arrangements can be challenging.
“Whether decisions have to be made about what is going to happen to a family home, pensions or a business, and the level of any maintenance payments, we can provide sensitive support to assist former partners to reach a negotiated settlement.
“If the matter does need to proceed to court, we can guide you through the court process and assist in achieving a fair outcome. For more information, please contact our Family Law team.”
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