Finances cause separation problems for two thirds of couples
17/04/2015
Joint bank accounts, loans and pay monthly purchases are making it hard for two-thirds of unhappy couples to break up in the UK, according to Debt Advisory Centre.
Joint finances are preventing unhappy couples from having a clean break up, as a third have a joint rental agreement and a quarter have a joint mortgage. This leads to at least one partner having to sort out alternative living arrangements, which can lead to couples being stuck under the same roof after they have broken up . As well as sorting out alternative living arrangements, a fifth of couples fail to agree on who is responsible for paying off a joint credit card or loan. A further 15% still have their money merged with their ex-partner’s in a joint bank account.
In terms of age, the figures show that 25-34 year-olds are the age group most likely to still have a tenancy agreement with their ex (39%) as well as a joint credit card or loan (24%). Older people, such as those over the age of 55 are more likely to still have a joint bank account (22%) or shared assets (33%) after the collapse of a relationship.
Ian Williams, a spokesman for Debt Advisory Centre, said:
“After the break-up of a relationship most people want to have a clean break and move on with their lives. It can be tough to do this if you are still financially linked to your ex.
“The last thing you want is to find that you are solely responsible for paying loans, credit cards or even a mortgage that you committed to together. While it can be difficult, it’s important to agree a plan for separating finances and paying-off debts. Couples should seek the help of a third-party to mediate if things have become acrimonious.”
Need Financial Advice?
If you have any personal finance questions related to this news article, please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
Lloyds bank to scrap Halifax brand in Scotland
Lloyds bank, currently undertaking a significant reorganisation of the business, has announced plans to scrap the Halifax brand in Scotland and instead focus upon the Bank of Scotland brand. This comes as no great surprise when you bear in mind the reputation and standing which the Bank of Scotland had in Scotland prior to the merger with HBOS. So is this a move which now allows Bank of Scotland...
Read MoreCan You Afford To Save?
While the banks and building societies are still desperate to gain access to funds to lend to customers there are some interesting savings options on the market. However, many of those with attractive interest rates will require consumers to tie-up their capital for a predetermined length of time. This has prompted many to ask whether they can actually afford to save, as strange as that may soun...
Read MoreNew balance transfer system goes live
Britons will be able to make bank transfers in a matter of hours as of today, thanks to the introduction of a new system. Apacs' Faster Payment System will cut the time it takes customers to make one-off payments by phone or over the internet from the current duration of around three-days. The system is in place at Barclays, Citigroup, Clydesdale and Yorkshire Banks, HSBC, Lloyds TSB, Northern Ban...
Read More400,000 stranded without salary
The bank payments body Apacs is struggling today to address problems caused by a major technical hitch, which could mean that up to 400,000 people will not receive their end-of-the month salary.The data corruption issue, which came to light on Thursday night, may mean that customers are unable to withdraw cash from ATM machines, although they could still use branch counters for transactions.Despit...
Read MoreMoody's slashes debt ratings for UK building societies
The UK building society sector was today shaken by a substantial downgrading of debt across the board. A number of well-known UK building societies have seen their debt ratings slashed to junk bond status after a review by the credit ratings agency Moody's. While there have been issues with some building societies in the UK the reduction of some ratings to near junk bond status is a major blow.