How a Divorce or Separation Can Affect Your Finances

The latest figures show that although 2017 saw the lowest divorce rates of heterosexual couples since 1973, divorce rates actually increased compared to 2015 for men aged over 45 years old and woman aged over 50 years old.  

Splitting two lives can be financially, as well as emotionally, detrimental to the parties involved. After separating, there may be two different households to run and this will mean that there are now two sets of utility bills, two rentals or mortgages, two water bills, and more. When two people separate, they have the same income in as they did when they were together in the same house, but now, that same amount of money, must support two households.

A stable marriage is one of the best ways to build and maintain wealth, while on the other hand, divorce can be very expensive. Possessions, money, financial assets and debt that have built up during (and sometimes before) marriage will be divided between former couples. It has been calculated that after a divorce, individuals need increased income, on average, of more than 30%, in order to maintain the same standard of living that they had prior to their divorce. 

The cost of a divorce is unlikely to deter a couple that truly need to split, but they should still be aware of just how great the expense can be. In some cases, the financial consequences can set a person back decades.

So, although money should not be a reason to stay together, the financial consequences do certainly need to be taken into consideration and, therefore, we strongly recommend visiting a financial planner to take advice before making a final decision.