Breaking up is hard enough to do for couples living together without arguing about who owns the belongings and who is responsible for paying the bills.
While tempers can often run hot over who the fridge belongs to, splitting finances is often a major problem for couples and worsens the longer they are together.
Around 6% cannot afford to move on and still have to live with their ex, 33% are still tied to a tenancy agreement and 25% have a joint mortgage, according to research by the Debt Advisory Service, a private advice firm.
The result is around 66% of couples cannot split because of the implications separation or divorce would have on their joint finances.
Sorting out living arrangements is one of the main issues for separating couples, as one can still find they are responsible for paying the rent or mortgage for the other even though they no longer live at the former matrimonial home.
Living arrangements
Generally, the best solution is for one or both to find somewhere else to live, but strict conditions on applying for a mortgage mean this is often no longer possible.
Living arrangements are just one problem faced by people splitting up.
The firm’s research revealed 21% of couples argue over who should pay off a joint credit card or loan, while another 15% row about extricating money tied in a joint bank account.
Even disagreements over possessions complicate separation. One in 10 couples has heated discussions about who owns furniture and appliances, like the fridge or TV.
Different split up complications affect different age groups, the study uncovered.
Younger couples, aged under 35 years old, tend to have more issues about joint tenancy agreements, credit cards and loans.
Legal obligations
Older couples, over 55 years old, have more problems with dividing joint assets, such as savings and investments.
The firm’s Ian Williams said: “When a relationship ends, it’s natural for people to want to draw a line under the past and move on with their lives. Unfortunately, separating finances is not a simple as that.
“Couples often commit to legal obligations that make them liable for the other’s debts or savings and investments made by one are in joint names.
“The last thing many of these people want to do is sit down and sort these problems out, but it is the sensible thing to do.”
Besides firms like the Debt Advisory Service, free services are also available to help couples who are splitting up to sort out their finances.
