Wednesday, 3 December 2014

One in four face financial trouble following relationship split

Breaking up is hard to do and now there’s proof that it’s financially tough too.

According to a survey of separated British adults, published last week by Resolution,

28% say they turned to loans, overdrafts or credit cards after a breakup
16% admit to receiving or asking for help from friends or family
26% had to move in with friends or family after a split.

The research also reveals that people with children fare even worse.

The average british household income is £32,000 meaning that there isn't a lot to go around. This, combined with court costs, the huge financial burden of establishing a separate household as a single person and child care and maintenance costs, put many divorcing people at high risk of debt.

Some sensible advice for separating couples is:-

  • Don’t bury your head in the sand - keep an eye on the finances.
  • Talk to your bank - they can’t help if they don’t know what’s happening.
  • Talk to your mortgage lender - if one party is buying the other out, the mortgage company needs to know as they may not think one salary can afford the mortgage.  Chat to a mortgage broker as some lenders are more flexible than others.
  • Any debts held jointly are your joint responsibility and you are both responsible for paying them off.

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