Holy Matrimony: 272000 delay divorce due to cost-of-living pressures.

The press release highlights the financial toll that divorce takes on couples divorcing. 40% who go through the divorce process believe it to be financially unfair. Only 7% of couples take advise from a Financial Adviser. (Our comment – considering that a prime aim of Financial arrangements on divorce is fairness that objective has clearly not been met).

Only 31% of Divorcing couples sought a Clean Break Order. A Clean Break whether by Consent Order or otherwise means that except in exceptional circumstances no party can make a claim against the other following the making of the Order. Putting it another way 69% are vulnerable to a future application by the other party.

What did the survey find out about divorcing couples attitude towards Pensions?

Only 20% considered Pensions as an asset to be taken into account. That is in contrast to 58% who view the Matrimonial home as an asset that should be dealt with on divorce. This disparity is despite the fact that in many marriages the Pension Pot(s) are the second biggest asset and in some the biggest.

Can you clarify further the headline that 272000 are delaying their separation/ divorce for financial reasons?

Yes. That is 13% of the total who wish to divorce or separate and they delay for financial reasons. That is in the period since 2020. More recently according to the press release the figure for those delaying is as high as 19%.

What did the survey find about the financial effects of divorce/separation?

Not good . In particular those couples who divorce over the age of 50 are badly hit. As a result of their separation/divorce they reduce their saving for retirement by £63 per month. Nearly half of separating couples see their incomes drop by 31% following the separation- an average of £9700 per annum.

What are the lessons to be drawn from this survey?

That divorce/ separation is bad for your financial health. That couples should consider Pension Assets on Divorce. And finally, that they should get expert legal/ financial advice.

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