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    Divorce rates fall by 30%

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    Divorce rates have fallen by 30% according to the Official for National Statistics (ONS).
    ONS statistics released this morning have revealed that the number of divorces granted in 2022 fell by 29.5% to 80,057, in comparison to the previous year’s 113,505 divorces. This is the lowest number since 1971.
    Family lawyers have widely been anticipating an increase in divorce rates and enquiries. Whilst the statistics have come as a surprise, it is not so surprising when examining the impact of various factors which have caused such a significant decrease in divorce rates.
    The introduction of no-fault divorce in April 2022 is likely to have had a significant impact on the overall divorces granted. Although some couples were waiting for no-fault to be introduced, which removed the need to attribute blame, to proceed with their divorce and there was a surge in enquiries at this point, no fault divorce introduced mandatory waiting periods. It is likely that these extended periods meant that fewer divorces were actually granted in 2022.
    In addition, the ongoing impact of the Covid-19 pandemic meant that 2021 saw a 9.6% increase in the number of divorces on 2020’s figures. The pandemic caused significant disruption to the family courts, meaning fewer divorces were processed that year. However, whilst the pandemic and lockdowns continued through 2021, the family justice system introduced remote hearings and more divorces were granted. Thus, in comparison to 2022, it is possible that this was artificial inflation caused by a surge in 2021.
    However, the drop in rates in 2022 is so dramatic in comparison to both 2021 and 2020 figures that this cannot be explanation on its own.
    The impact of the cost-of-living crisis is being cited as a key reason for the downward turn as many couples who were wanting to separate postpone their divorce for cost reasons. As gas and electricity prices soared, food, bills and housing all increased and money did not, and has continued to not, stretch as far. Worries over future finances and going from a dual income household to a single income household was at the forefront of many couples’ minds.
    Here at Stowe Family Law, we conducted a survey on the impact of the cost-of-living crisis on relationships. 30% of respondents said that they were staying in their current relationship because of fears they could not afford to live alone.
    In addition to these factors, ONS reported last month that marriage rates in England and Wales had fallen below 50% for the first time since comparable records began. Only 49.4% of adults over 16 were reported to be married or in a civil partnership in 2022. This has direct links to the number of divorces as without marriage there can be no divorce.
    Family lawyers will be interested to see over the coming years whether the decrease in divorce rates is an ongoing trend, or whether they are a direct result of the economic and social factors of the last few years.
    Useful Links
    Can I afford to divorce my partner?
    The rise in birdnesting after divorce
    What happens to the family home?
    Client Guide: Divorcing during the cost of living crisis

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      in Children

      The Impact of the Housing Crisis on Divorcing Couples

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      Whilst the impact of the cost-of-living crisis is ongoing, the housing crisis in the UK has taken a front seat in the media. The market has seen record high mortgage rates which has become a battleground for divorcing couples, as well as sky-high rental prices and a lack of housing.
      These issues are having a significant impact on divorcing couples across the country.
      Housing is often a contentious subject in divorce proceedings, as couples fight over whether to keep the family home, and, if they do, who gets to live in it. As mortgage rates have risen, what to do with the marital property has become an increasingly tricky subject.
      What happens to the home in divorce?
      Generally, there are three options for divorcing couples when it comes to property. The first is to sell the house and pay off whatever mortgage is left. They then divide any equity. This money is used to put a deposit down on a new house or to rent a property.
      The second option is to keep the family home and the mortgage in both names. The couple agree to sell the property at a later date, for example when their youngest child turns 18.
      Finally, in some divorces, one party will buy out the other’s interest in the house and transfer ownership into their sole name.
      If you decide to sell the marital home, equity is apportioned according to various factors, including the borrowing capacity of each party.
      Nevertheless, being able to afford two separate properties is not always guaranteed especially in the current climate.
      If you are unable to come to an agreement with your ex-spouse about your marital property, it may be necessary for the court to step in. Although the court’s starting point will be a 50/50 split of the assets, the decision will be based on fairness, depending on the needs of each party, their future earning capacity, the wellbeing of any children.
      For those going into renting, no-fault evictions are a concern. The government has again delayed the Renters (Reform) Bill. This piece of legislation would improve security for renters as it would impose restrictions and obligations on private landlords, preventing them from evicting tenants without proof under Section 21 of the Housing Act.
      What options are there?
      The housing crisis is making property decisions increasingly difficult. Combined with the impact of the cost-of-living crisis, couples going through divorce are having to think outside the box.
      Birdnesting is one such avenue. This is where the children stay in the family home, and their parents rotate into and out of the house. Each parent will have a set amount of time in the house, dependent on the child arrangement agreement.
      However, this means that they will also need a separate living arrangement, but many turn to friends or family as a temporary solution.
      However, this is not always possible. As the housing crisis continues, we will likely see more divorcing couples coming up with creative solutions to the housing issues.
      It is important to discuss all the avenues available to you with a lawyer. When there has been full financial disclosure, negotiations can begin on what the marital pot will allow.
      Useful Links
      Property in Divorce – what you need to know
      How to financially plan for your divorce: Watch on YouTube
      Top 3 Financial Considerations
      Budgeting Solo in the Cost of Living Crisis: Watch on YouTube
      Can I afford to divorce my partner?
      Dangers of a DIY Divorce: Listen on Spotify
      Taking control of your finances on separation and beyond: Listen on Spotify More

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      in Family Law

      How to manage the Cost-of-Christmas Crisis

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      It’s the most wonderful time of the year!
      But it’s also one of the most expensive.
      The Cost of Christmas Crisis, as it has been coined, is taking its toll again this year. Recent research from easymoney has revealed that people are cutting down on their Christmas spending this year, as the cost-of-living crisis has an ongoing impact. 59% of us are looking to make cuts this year, with 55% of respondents stating that whilst they usually have an extra savings pot put aside for Christmas, they have saved less than planned.
      Financial Planner Jodie Phelps has put together some top tips on how to manage your money in the Cost of Christmas Crisis when the purse strings are tighter than ever.

      Be aware of the potential for emotional spending during the holidays. Stay mindful of your emotions and instead of using retail therapy as a coping mechanism write a list of other things you enjoy doing so when you feel yourself about to spend do the other things on your list instead (eg. take a bath, go for a run, call a friend)
      BUT, recognise the emotional challenges that may arise during the holidays and prioritise self-care; allocate budget for activities that bring you joy and contribute to your well-being
      Develop a budget that reflects your changed financial circumstances and keep track of your spending
      Create a list of people you want to buy gifts for and allocate a specific amount for each person
      Consider creative and thoughtful gifts that don’t necessarily have to be expensive (eg. photo collages, scrap books, experiences). Remember, the holidays are about spending time with loved ones and creating meaningful memories, not just about the gifts.
      If you have a large family or friend group, consider setting limits on the amount spent on gifts or participating in a Secret Santa
      Plan your holiday meals in advance and create a shopping list. This can help you avoid last-minute, impulse food purchases/takeaways
      Be mindful of impulse purchases, especially when faced with holiday sales and promotions
      Look for discounts, compare prices, and consider using cashback or price-tracking tools to find the best deals
      After the holidays, review your spending and assess what worked well and what didn’t. Use this information to plan for the next holiday season.
      Make a note of your Christmas pay date when budgeting, as it’s usually earlier in December. Plan for the long stretch between Christmas pay day and January pay day
      Start saving a monthly amount for next Christmas so that next year you have money allocated for you to enjoy Christmas.

      You can find out more about Jodie on her LinkedIn.
      Relationship Tensions
      Financial tensions are a huge driver in divorce enquiries, and in a survey that we conducted, 60% of respondents said that the crisis was negatively affecting their relationship.
      If you do find that tensions around money build between you and your partner around this time of year, here are some suggestions on how to safeguard your relationship at Christmas. It’s important to remember that Christmas does not cause divorce and relationship breakdown. However, it can expose pre-existing issues, so getting to the root of the problem is very important.
      Stowe Solicitor Abi Jones has some top tips on reducing tensions around the festive season:

      Communicate – communication is central to healthy relationships and talking through your worries with your partner can help to alleviate pressure
      Lean on friends or family members outside of your relationship for support if needed
      Figure out where your priorities are, and if they are different to your partner’s
      If you have differing priorities, try to compromise and find where your middle ground lies
      Consider speaking to a financial planner or another professional – you can find our recommended partners in our Divorce Directory
      Try to focus on the positives, even if they seem insignificant. Small changes can make big differences over time
      Come up with interesting ways to celebrate this time of year together without the pressure of money
      Try to have some time together. Christmas can be a very busy time so spending time with each other is essential. It does not have to be big or expensive. It could be as simple as having a movie night together when the children are in bed.

      First Christmas After Separation
      Abi discusses how to manage your first Christmas after separation.
      It may be that this is your first Christmas after divorce or relationship breakdown. If this is the case, you may be more worried about money than you usually are as you may well have gone from a dual income household to single income. Not only this, but the routine and traditions of the day may also suddenly be different.

      Create experiences, rather than physical gifts
      Downsize your giving
      Use second-hand website such as Vinted or ebay
      Do Secret Santa instead of buying gifts for everyone
      Make home-made gifts
      Keep the celebrations small
      Don’t be tempted by payday loans, as this may cause more issues later on
      If you have young children, toy appeals may be available. Certain charities have toy appeals where individuals can donate toys which are then distributed between families
      Try not to compare your Christmas to others, either of your past or other people’s
      Manage the expectations of any children – let them know that change is normal but ensure they are informed of what changes, scheduling, what will be happening, where and when.

      Remember that Christmas is one day. There is a great deal of pressure for Christmas Day to be perfect, but it is just one day in the year.
      Think about how you want to spend your Christmas. Would you like to spend it with a friend, with family or even alone. This is an opportunity to make new traditions.
      Lastly, Christmas does not necessarily have to take place on 25th December. If this is the first year you do not have the children after going through a divorce or separation you can always pause your Christmas until the day after or have it before.
      Useful Links
      Financial Wellbeing with Jodie Phelps or watch on YouTube
      Surviving Christmas after Separation
      Child arrangements at Christmas
      Christmas alone with divorce and break-up coach Claire Macklin
      Budgeting solo during a cost-of-living crisis: Listen on Spotify or Watch on YouTube
      Supporting children through divorce: Listen on Spotify More

    • 100 Shares169 Views

      in Children

      Why is September a popular month for divorce?

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      The impact of the summer holidays 
      September is usually a busy month for family lawyers, as it is a popular month for divorce. There tends to be an increase in divorce enquiries, particularly in comparison to August, which is quieter as families enjoy the long summer holidays.
      In fact, the summer break is sometimes seen as a reason for the rise in divorce enquiries in September. Families commonly spend more time together, and this can expose cracks in the relationship that may not otherwise have come to the surface.
      A similar phenomenon happens every January, termed by the media as ‘Divorce Day’. Divorce Day is the first working Monday of the year and has historically been the busiest day of the year for divorce enquiries, as the impact of a stressful Christmas and New Year takes its toll on relationships.
      For struggling couples, the summer holidays can bring deep-rooted issues out into the open. More time spent together, the need to provide entertainment for children, the financial demands of a holiday, and the pressure of having to be seen to have fun and be a happy family, can push relationships to the limit. 
      One of the key issues we as family lawyers see in September is how money worries surface after increased spending over the holidays. 
      Mortgage rates and economic uncertainty 
      Financial issues often play a significant role in relationship breakdown. They have been cited as the cause for a relationship breakdown in record numbers at Stowe over the past 18 months.
      Money can be a sensitive topic for even the strongest of couples. For those already struggling in their relationship, it can prove to be the final straw.
      Increasing mortgage rates are having a considerable impact on couples in the UK, potentially leading to consideration of divorce.
      Some couples are starting to see old deals (some as low as 2%) expire and new five-year fixed rates reach 6%, potentially more in coming months.
      Here at Stowe, we conducted a survey of 600 people across the UK on how mortgage rates are affecting families and relationships.
      The survey revealed that 82% of respondents have been or will be financially impacted by the inflation of mortgage rates.
      Almost a quarter (23%) responded they can no longer afford to pay their mortgage. Over half of the respondents said they were experiencing friction within their marriage or relationship because of this issue. 
      Over the cost-of-living crisis, divorce enquiries have risen to record highs, with financial issues regularly cited as a primary reason. 
      The economic climate, coupled with the pressure of the summer holidays, could prove too much for more couples, leading to them looking into divorce in September. 
      Financial problems and domestic abuse
      However, even accounting for the ongoing economic uncertainty and the rise in mortgage rates, the rise in September for divorce enquiries may not be as significant as has been seen in previous years.
      Recently, there has been a rise in the number of people who are unable to leave their marriage or relationship due to financial problems. 
      This is all the more concerning for people who are trapped in abusive relationships who are unable to leave their partner because they cannot support themselves financially on their own. 
      Victims of domestic abuse have been hit hard by the cost-of-living crisis. This is because financial hardship is connected to increasing physical, emotional and financial abuse. 
      Furthermore, inflation, and now mortgage rises, may mean more people cannot afford to divorce or separate from their partner, particularly if the abuser is using money as a means to control their partner.
      Will September 2023 be a popular month for divorce?
      For couples wanting to start the divorce process, money will certainly play a role in the decision. However, it will be interesting to see whether the economic environment will swing matters towards the usual September increase in enquiries or whether there will be a drop in couples wanting to start divorce proceedings.
      For those who choose to end their relationship, getting the right support and legal advice is crucial. Anyone suffering abuse who finds themselves in  immediate danger, please call the police. For advice on domestic abuse please call the National Domestic Violence Helpline on 0808 2000 247.
      Useful links
      Mortgage after divorce
      How much does divorce cost?
      Effects of divorce on children
      Economic abuse
      Holidays with children after divorce
      Legal help for domestic abuse victims More