Credit Crunch

Credit crunch forcing couples to delay separation

The present difficulty in getting credit and/or being able to sell property may be playing a key role in keeping couples together, according to research from online banking group Cahoot.

More than one quarter of UK consumers surveyed by Cahoot said that they are less likely to separate from their partner due to their inability to get credit in the wake of the credit crunch. The respondents also stated that they feared their standard of overall living would drop if they were to become single again. These figures equate to over twelve million people being so concerned about the cost of living alone, they’re choosing to remain in their relationships.

Going it alone would leave many people with an income that’s insufficient to pay their regular bills and to pay off existing debts, the survey revealed. Single people are also less likely to get a new mortgage.

Another fact to appear from the survey’s results is that men are more worried than women about being single – from a financial point of view – with 30% of respondents stating that they are less likely to separate from their partner due to the credit crunch whereas only 25% of women felt the same.

Matthew Timms, Managing Director of Cahoot said, “The cost of being single can extend to thousands each year, but with a little careful financial planning you needn’t be tied to your partner purely for financial reasons.”

Other surveys and reports around the country indicate that couples wishing to divorce have delayed doing so because they can’t sell their property. Family Law expert, Stephen Brand, of legal firm Thorntons, said the problem had become significantly worse in the last few months.

He added, “Unless they have sufficient income where they can afford to buy or rent other properties while they wait to sell the house, they may well be stuck in this situation for a while.”

Shaun George, from solicitors Simpson & Marwick, said that the children in such families were likely to suffer due to their parents being forced to remain in the family home despite often bitter feuding and rows.

Family Advocate Kirsty Malcolm stated that it’s been widely recognised recently that couples who would – at any other time – have separated are finding that unless their situation is “intolerable”, they are staying together until they are able to live independently.

For many, this could mean that they will actually end up staying together long-term, so for some, the credit crunch could actually save their relationship. For others however, the stress of living with someone you no longer care for could be potentially very damaging and lead to a rise in domestic violence.