If your getting divorced you’ll understand that the proceedings can leave both sides uncomfortably in debt. The emotional side of divorce can be unpleasant, but it’s the money side that can be one of the most stressful aspects of separation. And dividing up the debts from the marriage can leave a big black hole in your available funds.
Since in fiscal and emotional terms the entire divorce proceedings can be costly, there have been demands for a more understanding way to negotiating the separation terms. The “Debts and divorce campaign”, has been released by the UK Insolvency Helpline to provide a efficient method in dealing with family debts. This is good news as over a third of people questioned said that seperation caused them more financial problems than losing their job or losing their partner.
In the survey, 30% of divorcees stated that they needed professional debt counselling, while 28% found it a strain to adapt to having just one household income. In fact 10% had major problems sorting out their debts and had to contemplate bankruptcy.
The research which was sponsored by the UK Insolvency Helpline, has clearly shown that the expense of divorce can leave people burdened with debt. Fifteen per cent said they had used credit cards to purchase holidays or luxuries they wouldn’t have purchased if still married. This kind of spending can become a difficult issue during the divorce negotiations.
Only 6% of people said they had successfully managed to control their finances during the divorce proceedings and had arranged an amicable decision. Of the 79% of those questioned who ended their marriages amicably, the majority said that their finances now needed a total review and makeover.
On for the most part those divorcees who got in touch with the UK Insolvency Helpline had between £15,250 and £24,500 of unsecured loans, while 50% had debts of between £2,100 and £6,100, mainly as a result of the costs of moving.
Many divorcees quizzed had entered into an IVA which is a lighter option to bankruptcy whilst still succeeding in greatly reducing debt levels.
When it came to practical advice, many relied on the Citizen Advice Bureau, whilst some relied on friends and others went to counsellors or used support organisations.
A spokesperson for the UK Insolvency Helpline said, “We have released the Debts And Divorce Campaign to try and comprehend our callers’ spending patterns. We can then help them plan for the future so that they should be able to reduce their legal costs as they are instructed through the entire divorce proceedings.”
