It has recently been discovered during research conducted by Legal & General that the cost-of-living crisis which has swept the country has led to the postponement of 19% of divorces. It is understood that this will have affected at least 270,000 married couples.
The high rise in interest rates and subsequent rise in mortgage rates
Due to this couples cannot afford to run two properties following separation and due to the high rise in property prices, many divorcing couples cannot afford to purchase two new properties upon the sale of the family home. This has therefore resulted in many unhappy couples remaining together out of fear of the financial uncertainty in the future if they divorce their spouse.
Heidi Kavanagh, Trainee Solicitor at Sinclair Law explains how the cost of living crisis is affecting divorcing couples. She explains that “Going through a separation is almost certainly going to cause financial hardship to many families without the added strain of the cost-of-living crisis. This is because the income and assets previously used to support one household are now being stretched to support the expenditure of two households. However, this is something that is taken into consideration when discussing any financial agreement and is something that will be factored in to ensure that any settlement reached is ‘fair’.”
It is thought that due to these added financial pressures, couples who are choosing to divorce are acting in person rather than consulting a solicitor due to their worries surrounding the fees associated with doing so.
This has been made more readily accessible to the public with the introduction of the no-fault divorce scheme and the online portal. However, many couples are only dealing with the divorce aspect of their separation and are not giving any consideration to the financial consequences of it.
This is because, unfortunately, many people do not realise that if finances are not dealt with at the time of the divorce proceedings, then financial claims will still remain live even though the marriage has legally ended. This means that either party in the future can make an application to the Court for a financial settlement or make a claim against the other party’s estate upon their death. It is extremely important that a clean break order is entered into at the time of the divorce in order to bring all of these claims to a conclusion.
Heidi Kavanagh reassures clients that “At Sinclair Law, we understand that going through a divorce is stressful enough, without the added pressure of the cost-of-living crisis on top of that. We can tailor our costs to suit individual budgets to ensure that you have the necessary legal protections in place to protect you and your family in the future and provide you with the best possible outcome for your circumstances.”
Get in touch with our expert, empathetic team
For a free 30-minute consultation regarding divorce or any family law matter, contact Heidi Kavanagh and the team at Sinclair Law on 01625 526 222 or request a call back using our web form.
How the cost of living crisis is affecting divorcing couples
