Debt from Divorce or Separation Between a Married Couple

Sadly, debt due to a divorce or separation is a part of the credit-led society we live in and not just in the UK. In this article we want to cover some of the ways that people choose to deal with the financial repurcussions of the break up of a marriage. There are strategies out there to help individuals cope and lessen the trauma of separation or divorce.
Let’s take a look at what going through a divorce as it relates to debt acquired from the divorce process itself.
The process of filing for and obtaining a divorce can leave both individuals in quite a bit of debt. While the emotional aspects of a divorce will certainly take their toll, the financial processes can be very taxing, as well, because the debts from dividing up debts from a marriage can leave a deep impression on your bank account. There as been a move towards a more peaceful process of sorting through separation terms due to the costly process dissolving a marriage has always been, both in terms of financial and emotional resources needed.
Recent surveys have shown that Britain’s average 160,000 divorces per year and not only stressful, but according to nearly half of those who responded to the survey said that breaking up caused more financial hardships than redundancy or bereavement. Many times, those who go through a split up end up using their personal savings, as well, and 36% of those surveyed claimed they’d gone into heavy personal debt due to the breakup. The statistics are not pretty, with one third of divorcees seeking professional debt counseling or advice, 28% finding it hard to adjust to living off of a single income and a tenth of individuals having such difficulty managing their debts that they’d begun to consider bankruptcy. Oftentimes, after enduring the rigors of a divorce, the newly single would wind up spending on holidays or luxuries with their credit cards that they never would have if they’d still been married. During the divorce process this sort of behaviour can really lead to antagonism between those seeking the divorce.
Although a quarter of the survey respondants wished they had come to an amicable agreement on finances and managed to control their own, a very small percentage said they had actually managed to do so. Out of the 78% of respondants who ended their marriages without hostilities, nearly all of them said they had major work to do to fix their finances. The average that divorcees who sought help owed in unsecured debt was around £20,000 with half of those people being an average of £4,000 in debt from the cost of setting up a new home. Many of those people chose a less severe alternative to bankrupty called an Individual Voluntary Agreement (IVA) and massively reduced their debt levels.
If you or someone you know is facing debt from divorce, there are alternatives to bankruptcy available that can help. Information on seeking a Debt Management Plan is available, as is information on IVAs and even, in drastic cases, Bankruptcy. Whatever method you choose, don’t wait until the debts begin to add too much stress to your life. It’s hard enough enduring the circumstances of divorce without enduring financial headaches, as well.

Sadly, debt due to a divorce or separation is a part of the credit-led society we live in and not just in the UK. In this article we want to cover some of the ways that people choose to deal with the financial repercussions of the break up of a marriage. There are strategies out there to help individuals cope and lessen the trauma of separation or divorce.

Let’s take a look at what going through a divorce as it relates to debt acquired from the divorce process itself.

The process of filing for and obtaining a divorce can leave both individuals in quite a bit of debt. While the emotional aspects of a divorce will certainly take their toll, the financial processes can be very taxing, as well, because the debts from dividing up debts from a marriage can leave a deep impression on your bank account. There as been a move towards a more peaceful process of sorting through separation terms due to the costly process dissolving a marriage has always been, both in terms of financial and emotional resources needed.

Recent surveys have shown that Britain’s average 160,000 divorces per year and not only stressful, but according to nearly half of those who responded to the survey said that breaking up caused more financial hardships than redundancy or bereavement. Many times, those who go through a split up end up using their personal savings, as well, and 36% of those surveyed claimed they’d gone into heavy personal debt due to the breakup. The statistics are not pretty, with one third of divorcees seeking professional debt counseling or advice, 28% finding it hard to adjust to living off of a single income and a tenth of individuals having such difficulty managing their debts that they’d begun to consider bankruptcy. Oftentimes, after enduring the rigors of a divorce, the newly single would wind up spending on holidays or luxuries with their credit cards that they never would have if they’d still been married. During the divorce process this sort of behaviour can really lead to antagonism between those seeking the divorce.

Although a quarter of the survey respondents wished they had come to an amicable agreement on finances and managed to control their own, a very small percentage said they had actually managed to do so. Out of the 78% of respondents who ended their marriages without hostilities, nearly all of them said they had major work to do to fix their finances. The average that divorcees who sought help owed in unsecured debt was around £20,000 with half of those people being an average of £4,000 in debt from the cost of setting up a new home. Many of those people chose a less severe alternative to bankruptcy called an Individual Voluntary Agreement (IVA) and massively reduced their debt levels.

If you or someone you know is facing debt from divorce, there are alternatives to bankruptcy available that can help. Information on seeking a Debt Management Plan is available, as is information on IVAs and even, in drastic cases, Bankruptcy. Whatever method you choose, don’t wait until the debts begin to add too much stress to your life. It’s hard enough enduring the circumstances of divorce without enduring financial headaches, as well.

Leave a Reply