As many of us are worrying more and more about everyday costs, this naturally causes a lot of stress and anxiety.
If you’re getting a divorce, you’ll find that the cost-of-living crisis factors into how you formally separate from your partner. For couples who are starting divorce proceedings in these economically difficult times, here are some points to be aware of when it comes to the divorce process.
No-fault divorce
Introduced in April 2022, the no-fault divorce allows couples to separate without the need to prove fault or wrongdoing by either party. The aim of this is to make the process of obtaining a divorce simpler, less contentious, and to prevent the ‘blame game’.
However, with such financial uncertainty, many couples are still finding it difficult to solve issues. This is where assistance from a local solicitor comes into play and is sometimes the most viable option to help resolve resolutions.
Dividing assets
With the cost of everyday items having increased quite dramatically, it is now more difficult to pay for things alone.
As a result, couples should create a record of spending to get a clear picture of day-to-day outgoings and how this may change post-divorce. This should include everything from mortgage costs to food shops.
It isn’t just current spending that needs to be assessed. Pension pots can be shared upfront by transferring funds intothe other’s name or one partner can earmark some of the income to be paid to an ex-spouse after retirement. This is important to consider as it can drastically impact one or both parties’ financial stability.
Family home
While it is common for the family home to be kept in order to provide stability for any children, this may no longer be a feasible option. Even if one party can take over the mortgage in their sole name, they may not be able to maintain the costs of running the property, meaning they may be forced to sell.
Options for the family home include selling up and splittingthe proceeds; arranging for one party to buy out the other; or keeping under joint ownership with one partner staying. The right choice will be entirely dependent on individual circumstances.
Nesting
With the heightened difficulty of navigating housing decisions during a divorce, a new arrangement is becoming increasingly popular. This involves children staying in the family home, and the parents being the ones to move in and out of a shared flat, depending on childcare days and custody agreements.
This is beneficial as it both allows children to remain in the family home and can be much more cost-effective than selling up and finding two new properties.
However, while this works well for children, it can add strain to the divorced parties involved and so may only be a viable solution while kids are still young.
