One in six recent divorces 'delayed due to financial concerns', survey finds
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Around one in six recent divorces were postponed due to money worries, according to a new survey. Some 17% of all divorces in the past five years were delayed over financial fears. Results from a survey by Legal & General Retail for divorcees show that concerns over income, escalating living costs, and the expense of the divorce process were major factors.
Released on “divorce day” – January 6, a date when law firms typically experience an influx of inquiries post-Christmas – the findings also reveal that 41% of divorcees didn't feel the financial split was equitable, often to the disadvantage of one party.
Additionally, there’s a lack of attention given to pensions during asset division, highlighted by just 13% considering it versus 50% accounting for family home value, leaving some potentially vulnerable in retirement. Childcare or other caring responsibilities taken up by one partner during marriage could result in significantly smaller personal retirement savings.
Furthermore, the study found that one in nine divorced people had either delayed or overlooked updating their will to exclude their ex-partner, setting the stage for potential battles over inheritance. Some even forget to remove their exes as beneficiaries from their pension (11%) or life insurance (10%).
Paula Llewellyn, chief customer and strategy officer at Legal & General Retail, highlighted the financial implications of marital breakdowns after revealing a new tool to gauge fiscal wellness. "We understandably focus much of our energy on the emotional side of separation but, as our research shows, money is an important factor that shouldn’t be ignored.".
