Divorce and the Credit Crunch

A lot of publicity recently has been about the winners and losers of the credit crunch but what about couples who want to divorce?

Generally speaking, divorce has a property led focus – most couples will live in a house they jointly own which will have to be sold, or bought out by one party, to enable the matrimonial finances to be severed.

For people splitting up, the credit crunch is having an impact. On some occasions, the couple will have to continue living in the house together until it is sold. For those with negative equity, again the finances can be very difficult to unravel which will almost certainly mean continued joint occupation unless one can afford to take on the mortgage payments themselves.

There is no easy answer to this problem but Foot Anstey specialist lawyers would look creatively at the family finances to see if there is any way of resolving things fairly without an immediate sale of the property. Legal aid is still available for this type of work and Foot Anstey is committed to providing this service which will mean people can continue receiving good quality legal advice even if their disposable income drops.

There are even reports that the credit crunch is causing a rise in divorces – people are trying to get out of their marriages or relationships whilst there is still some equity in the house to divide and before property prices drop any further.

No matter what your situation we would always recommend taking advice. In most cases Foot Anstey lawyers for example, will be able to suggest some practical solutions even if the couple can’t see a way out themselves. Approaches involving mediation and collaborative law will mean that lawyers, and clients, can work together to reach an amicable solution, productive for all concerned which, hopefully, means that, even if a couple do have to remain in the house together a bit longer than usual, civility will remain.

As well as specialist divorce lawyers Foot Anstey also provides a specialist team, Living Together, which advises on issues that affect people who co-habit.  

To find out more about family and divorce issues click here or contact Jessica Pitt, solicitor on 01392 685224 or email jessica.pitt@foot-ansteys.co.uk

To find out more about the Living Together team and the services they offer call 0845 140 0025, email livingtogether@foot-ansteys.co.uk or visit www.livingtogether.biz

Published 06/08/2008. The author of this article is Jessica Pitt