Financial News

Divorce Comes With An Unforeseen Financial Cost

Thousands of couples that go through divorce each year regret splitting up when they realise the financial consequences of leaving their partners.

Around 50,000 couples divorce every year in England and Wales alone, and more than a third (36%) confess that their finances are more difficult when they become single again.

Single parents admitted they were sinking farther into debt almost every day.

Half of divorcees had to increase the hours they worked after the split to earn more cash to pay their bills, says the study by Research Without Barriers.

Stressed singles struggle to make ends meet

Singles were stressed by their finances unravelling after divorce. Many resorted to shopping around for better deals, realised that they lack information to make informed decisions about their money or had never had to tackle their finances because their former partner took on the role.

Becky O’Connor, a personal finance specialist at financial firm Royal London, which commissioned the research, said: “It’s a sign of how serious the financial struggle can be post-split that some people feel like they wish they had not gone their separate ways.

“The impact on your personal finances from splitting up and going down to one income is a big challenge. A drop in income often comes after you’ve gone into debt to pay for the divorce or separation – so it’s a double whammy of debt repayments and less money coming in to pay the bills.

Split has a financial impact on everyone

“The research underscores the importance of a fair financial settlement when a couple divorces.

“It can be a long road to getting finances on track again, but it is possible. Household bills don’t exactly halve when one person leaves, but some outgoings, such as food, can be cheaper and once you’ve got the hang of budgeting on your own, you might find household finances become easier to manage.”

O’Connor also flagged contacting a debt advice charity, such as StepChange, for people struggling to make ends meet after divorce.

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