Essentially Home Loans Weblog

Many of the people who seek help from debt management companies like Credit Advice were forced into debt by the break up of a relationship, usually divorce.  This year, £32.2 billion will be divided by divorced couples, according to a new survey by Money Expert.

MoneyExpert reports that the asset split averages £230,000 per couple.  The largest asset to be divided is property. This accounts for 36 per cent of their couple’s wealth.  The next assets to be divided are pensions and cash.

Today, many couples argue over dividing loans. Household debts have become so large in most households that they must be taken into account when the couple divorces. In some cases, the only item the couple have to divide are debts, which are so large they completely swallow any assets the couple may have accumulated.

Sean Gardner, MoneyExpert chief executive, said: “[Divorce] can be made all the worse by increased financial pressures following a separation or divorce.

“Also financial problems can be a significant factor behind marital breakdown and to help avoid this, it’s important for couples to be honest and open with each other about their finances.”

Recent research states that January is the most common month for divorce proceedings to start.  The total number of couples splitting will reach 140,000, in part due to the post Christmas hangover.

According to recent research by charity groups, women are the hardest hit by divorce, often being forced into bankruptcy by debts they are unable to manage.   Currently, many single parents who seek debt management advice are carrying more than £10k in debts.