Researchers at the life insurance and pension specialist revealed that the cost of living crisis has prevented around 19% of divorces from going ahead – this equates to around 270,000 couples. When asked why they didn’t go ahead with legal separation, people named factors such as income worries, high cost of living and the overall cost of divorce.

 

Family lawyer Neil Russell expanded on this in a recent Guardian article, explaining:

 

“People always think financial pressures break couples up but they also keep them together. What with inflation and interest rate rises, it has put a lot of pressure on families because they can’t afford to sell and buy, because they can’t afford the new mortgage rates and they can’t afford to maintain two households, so a lot of people stay together.”

 

The research also found that around half of divorced people experienced an income shrink of around 31% over the last few years, as the economy has suffered. This means an average loss of annual household income of around £9,700 a person.

 

The importance of getting a ‘clean break’

 

These latest findings paint a worrying picture for UK couples considering separation. With financial pressures delaying divorce, many people may stay legally married even if they are no longer together. This may resolve issues within the relationship in the short-term, but it is likely to pose risks for the future.

 

Without signing the paperwork to finalise the divorce, there’s the chance that one party may claim against the other at some point in the future. This could have a major impact on that person’s finances, as well as preventing both parties from moving on (and potentially remarrying) and getting a clean break. It leaves a financial obligation to an ex-spouse in place, even years after a couple have decided to end the relationship.

 

There’s also the issue of fairness in splitting finances, a process which happens during a divorce. With the assistance of experienced divorce solicitors, separating couples are able to declare and divide all assets fairly. This includes shared property, money and debts, as well as making arrangements for pensions.

 

According to the Legal & General research, just one in five couples remember to discuss pensions when considering divorce. Only 58% considered the value of the family home. This is why the assistance of a legal expert is so crucial.

 

Ultimately, without going through and completing the legal process in full, divorcing people may not get what they’re entitled to.

 

Legal & General managing director Paula Llewelyn said:

 

“By consulting a financial adviser, people increase the likelihood of a divorce being fair and equal. While the number of people seeking out this support has increased in recent years, we need to encourage more couples to take this step.”

 

If you need legal advice you can trust, get in touch with Liverpool divorce solicitor Tracey Miller Family Law by calling 0151 515 3036 for a free, no-obligation initial consultation.