How are Divorcing Couples Coping with the Cost-of-Living Crisis?

In 2022 UK households were faced with the biggest squeeze on their finances since the 1970s. With high prices for essentials such as fuel, food, gas, electricity and mortgages, many households had to re-evaluate their spending, make major cutbacks, or eat into their rainy-day savings.

For couples considering a separation, affording to run two separate households or survive on one income could cause major concern or see them hold off from splitting altogether, especially if they have children to support.

Our Divorce and Family Lawyers at Lamb Brooks assess how the cost-of-living crisis is affecting couples already going through the stress of a divorce or separation and what new unprecedented living arrangements are being practiced.

Disagreements About Money

Money is a frequent strain on relationships and one of the most common reasons for divorce. Whether that is simply not having enough of it or disagreements on how it should be spent. When the purse strings are tightened, it is not uncommon for arguments about finances to multiply and cause irreparable damage to a marriage.

If households are particularly struggling, they may need to make cutbacks on luxuries that would usually help keep their relationship flowing, such as holidays, meals out or gifts. One or both parties may even need to take a second job, or work longer hours to bring in more money to the household, which can in turn lead to relationship problems.

Often challenging times are the catalyst for make-or-break situations.

Living Together Whilst Separated

Sometimes couples are continuing to live together post-separation or divorce for financial reasons. It may not be feasible to own separate properties, obtain a mortgage or find affordable housing individually, or they may be holding off selling their marital home until house prices and mortgage rates have settled down.

This is not ideal or suitable in many cases and can make separation very complicated. Especially when it comes to raising children, being able to mentally move on or start a new relationship. If the separation was hostile and the relationship is not amicable then living together can be a bad decision and can impact on your mental wellbeing. For some couples who have managed to part on good terms and are agreeable to living together, then this could work, but only in the short term.

House Sharing

The pressure on finances has led to some separated couples ‘nesting’ rather than living in two separate homes. The idea of this arrangement is that one partner lives in the home with the children for one week then swaps with their ex-partner for the other week. This provides some stability for the children and can save the expense of finding alternative accommodation. This novel idea can work if family members or good friends live nearby, where spare rooms or sofas can be used when it is not ‘your turn’ to live in the marital home, however this cannot be a viable long-term solution.

Delaying Divorce

It is understandable why some couples may put off going through the official process of divorce whilst times are turbulent, however it is always worth keeping in mind the risks of doing nothing.

Whether staying in a marriage until you feel more comfortable financially or splitting but continuing to live together, some things to consider are:

• Staying in an unhappy relationship can take a toll on your mental health
• Stress can cause physical health issues such as heart problems or insomnia
• It can negatively impact your children who may be exposed to adult conflict in the home
• Divorce can be more complicated as it becomes unclear on when the separation took place
• It can be difficult to find closure or move on
• You could still be financially responsible for any debts
• You have little control over joint savings or bank accounts
• Delays could allow your ex-partner to withdraw, move or hide assets from you
• You have little freedom to forge a new life or embark on a new relationship

Cheap or DIY Divorce

Couples wanting to formally separate may think carefully about how they go about getting a divorce to try and keep costs low. Whilst it is always sensible to keep costs to a minimum, cutting back on legal advice could end up putting you in a worse position in the long-run.

There are many adverts online offering ‘cheap divorces’ however, it is worth approaching these with great caution as they may not include any form of advice, which you will likely need if you have any finances, assets, property or children to make arrangements for. Many people have divorced and make agreements between themselves that come back to haunt them. We often hear about situations where people lost out because they didn’t seek any advice and agreed to a poor deal due to being naive about what they were entitled to. Other scenarios include divorced people who are faced with a claim for their pension or property years down the line or find themselves unable to re-marry as their divorced didn’t reach the final stage unbeknown to them.

If you are concerned about your financial position, it would be sensible to invest in a specialist family solicitor so that they can advise on the best route and help you separate with financial stability and dignity.

Financial Orders

Given the financial impact on households it is more important than ever for separating couples to make sure that they obtain a financial order (or clean break order) alongside their divorce.

This will help give both parties peace of mind, financial clarity and reassurance that they will not be held liable for any future debts or claims against them.

A financial order is a Court Order which details how you and your ex-spouse will agree on your finances upon divorce. The arrangements are legally binding, and it is exceptionally rare for one to be challenged, if the proper legal advice has been taken. It will detail how assets such as property, loans, investments and savings will be shared, split or accounted for.

Having a financial order means that you are better placed to manage your finances and plan for the future, having clarity on how your finances and assets will be dealt with in both the short term and the long term. It can help divorced couples to move on with their new lives knowing that they are protected.

Ready for Divorce?

Stressful times will often test relationships and either bring couples together or be the straw that broke the camel’s back.

If you are ready to part ways and want some reliable advice on getting a divorce started then please get in touch with our approachable and experienced family law team.

Call us on 01256 844888, email enquiries@lambbrooks.com or speak to our online chat assistant (who is a real person, not a robot) at any time of day.

Whether you are just exploring your options, have been separated for a long time or are already divorced but need further advice on your financial position, then we can help you find a peaceful way forward.