The start of the new year is often a busy time for divorce lawyers, with the start of the new year bringing fresh beginnings but sadly some endings too. However, lawyers are seeing a change in the norm with more divorces delayed due to the impact of the cost of living crisis. Read on to find out more.
Divorce Delays Changing National Divorce Day
It is thought that the rise in divorce enquiries at the start of the year is because the festive period can be a stressful time that exacerbates couples’ problems, resulting in something known as National Divorce Day which typically lands on the first working Monday of every year. This is the day when law firms reportedly see a spike in couples filing to split from one another.
However, research from Co-op Legal Services suggests that National Divorce Day may just be a myth and that springtime is now one of the most common times of the year for divorce enquiries. Many British couples can no longer afford to start divorce proceedings following the festive period and the law firm’s research also reveals that 1 in 5 people (22%) had to delay their split due to monetary reasons.
Divorce Affected by Annual Income
New research marking this year’s Divorce Day (2 January 2024) also found that financial pressures have caused divorce delays, affecting 272,000 divorces. The impact has been particularly noticeable since 2020, with income concerns, costs of living pressures and the price of divorce all given as reasons to postpone the split. Couples who may have contemplated separation have opted to stay together over fears of the financial repercussions that may follow. With inflation and interest rate rises, many couples are unable to afford new mortgage rates needed to buy separate properties or to maintain two households, so end up staying together.
The research also suggests that nearly half of people who divorce (48%) see their annual income reduced by an average of £9,7000 in the year after a separation. This had a particular impact on people over 50 who end up saving less each month towards their retirement owing to these financial challenges.
Pensions Often Not Addressed on Separation
In two out of five divorces (40%), people felt that it wasn’t an equal divorce, with one party being favoured and ending up the financial winner. Despite this, just 7% of people will consult a financial advisor as part of their divorce. The research also found that while divorcing couples will consider the value of their family home on separation, just 20% consider pensions when dividing assets with their partners. As a result, the Pensions and Lifetime Savings Association (PSLA) has introduced new guidance designed to assist private sector occupational pension schemes when providing information to scheme members on Pension Sharing Orders (court orders that assist couples in dividing their pension funds on divorce).
Are You Considering Divorce or Separation?
A couple facing separation or divorce should consider early advice from an experienced family solicitor. This ensures that they are informed of their options before making any decision, therefore making the separation process quicker and more cost-effective.
At Witan Solicitors, our experienced family law solicitors combine a human, compassionate approach with decades of expertise to provide you with the best legal services when you are faced with challenges such as divorce and separation. Contact our family law solicitors via email for immediate practical advice.
Image by gpointstudio on Freepik
