Throughout recent months, many couples are finding themselves in a position where they can't afford to separate due to the increased cost of living. Money worries have always put a strain on relationships, often causing many marriages to end, now more so than ever.
Two is better than one when it comes to finances
Couples contemplating splitting up have found themselves in a situation where they simply cannot afford to get a divorce. The increased cost of living means many people are struggling to pay the bills even as a couple. Splitting up and living separately only makes this worse as it means dividing a single household, and its wide range of expenses, in two bills once paid by two people will only be paid by one.
Planning for the future
A significant part of the divorce process is ensuring a fair split of the couple’s assets and planning ahead for the future. Resolving finances during a time of economic uncertainty is becoming increasingly difficult as no one can accurately determine what each side may need financially to move on with their lives given daily changes with inflation, house values, mortgage and interest rates, as well as pensions and other investments. Help is out there
Commenting on the challenges divorcing couples are facing during the current period of economic uncertainty, Head of Sweeney Miller Law’s Family Team, Rebecca Cresswell said:
“No one should feel forced to remain in an unhappy marriage just because their financial position will not allow them to leave. Against this background, many people unfortunately feel that there is nowhere to turn and they are trapped in a relationship, unable to move on with their lives. The team and I are always looking for ways to help our clients deal with these difficult situations and have some practical ideas that may be of help.”
Practical Tips
There are several practical things that can be done to alleviate some of these challenges:
Counselling – the first step in many marriages under strain is to seek counselling. Confidentially talking candidly through relationship issues with an independent and experienced professional can result in both sides understanding each other more and can lead to the marriage being less likely to break down. Seeking marriage counselling will be far less expensive and emotionally burdening than divorce.
In cases where finances are the main cause of contention, obtaining the advice of a financial advisor at the early stages of discussing a split can often be helpful, giving you the full picture of what divorce will mean for both sides.
Do-it-yourself divorce – as a result of a recent change in the law and introduction of ‘no-fault’ divorce, many people now choose to go through the process with little or no help from a solicitor. This has been deliberately simplified to help splitting couples. You can apply online at www.gov.uk/divorce or by post. That said, we always strongly recommend that splitting couples seek legal advice as divorce does not end any financial ties with a former spouse – you still need to deal with any financial settlement, whether that is through a clean break or consent order. Properly sorting finances on divorce with professional help from a solicitor could result in saving considerable legal fees by reducing the chance of any future disputes.
Check whether you qualify for help with fees – there is a £593 fee to apply for a divorce, this is often too expensive for many. Help with fees is calculated based on your monthly income. In many cases the party applying for the divorce cannot afford to pay the fee and so may qualify for help with the cost. If instructed to deal with your divorce, we will carry out this test for you.
Only seek advice for finances – resolving finances can be complex, depending on what assets/liabilities are involved. Splitting couples will often benefit from having a solicitor to act on their behalf for the financial side of the divorce.
Just one side gets the advice of a solicitor – if the separation has been amicable, this is often achievable. If you are uncomfortable going through the process with no guidance from a solicitor, it is possible for just one side to instruct a solicitor to get their advice and split the cost.
Be reasonable and willing to compromise with your former partner – especially in cases where there are children involved, it is very important to be able to compromise and take a nonconfrontational approach regarding issues such as child contact. Any Court proceedings, including those involving children, can get very expensive and are often avoidable through communication and negotiation. An obvious exception to this approach is if domestic abuse is involved and it is therefore not advisable to communicate with your former spouse.
Make the most of ‘free’ initial appointments with solicitors. Some law firms offer free initial meetings to talk through your options when considering a split. Sweeney Miller Law are one of those firms, we provide a free initial no obligation 30-minute consultation.
Explore payment plans with your solicitor – at Sweeney Miller Law we know that each of our clients’ circumstances are unique. If clients need legal advice, we always explore with them a range of options to see if we can help with payment plans to manage their particular situation.
Expert team
The Sweeney Miller Law Family team has longstanding connections with financial, tax and pension advisors who can advise on the valuation and division of assets, including pensions, following a split. Our large Conveyancing team can help with the sale or transfer of the family home. We also have an experienced Commercial team to help with any company interests on divorce. Our Estate Planning team can help you create a Will to reflect your new wishes following divorce.