With everyday costs continuing to increase at a rapid rate driven by inflation and the potential for increased mortgage and rental costs driven by higher interest rates, family finances are again under significant pressure. With little light at the end of the tunnel, the cost of living crisis is starting to have an impact on more than just our pockets.
Here, we look at some of the consequences of the cost of living crisis on couples in difficulty.
Money Tensions
It is well-known that there is a strong link between finances and mental health. As money becomes tight, stress levels often increase, putting strain on relationships.
Disagreements may start to arise around financial priorities, spending and saving habits, or who will pay for what.
Where problems existed beforehand, this pressure may be the straw that breaks the camel’s back. Even couples that didn’t have serious issues beforehand may start to feel the impact as money struggles take their toll.
The mortgage trap
The increased costs of living are coming from every angle, and for some, it may simply be unaffordable to ‘go it alone’. Even if a couple were previously considering separation or divorce, spiralling costs may force them to stay living together. Unfortunately, this additional pressure may only serve to intensify relationship troubles. If a couple is no longer getting along, this can particularly damage children. As such, it is important to prioritise their needs and well-being.
It’s important to highlight here the potential impact of the cost of living on the potential for abuse. Those in abusive relationships should make an exit despite the financial situation and not feel further trapped by their abusive partner.
Financial abuse may also become further magnified by the financial crisis as abusers seize the opportunity to exercise greater levels of coercive control. Again, wellbeing is a priority, and if a partner’s actions are detrimental to your freedom, you should look to end the relationship and find alternative living arrangements.
Re-evaluation
For those already part-way through a divorce or in the midst of financial remedy following divorce, it may be necessary to re-think your financial position. With the recent increases in interest rates and potential further increases on the horizon, mortgage costs are set to increase significantly. This may, in turn, have an impact on house prices at some point. In light of the uncertain nature of the housing market, it would be sensible to future-proof yourself as much as possible. Where you may have been planning to re-mortgage a property to achieve a clean break, this may need to be re-considered. Where a home sale is to be agreed for a future date (as part of a Mesher Order), it may be wise to state this as a percentage of the home’s future value rather than a fixed lump sum.
Due to the complex and changing nature of the financial climate, seeking advice from an independent financial advisor might prove prudent. Certainly, appointing a family lawyer who has experience in helping clients through divorce and financial settlement is a priority now more than ever.
Please contact Anthony Jones, a solicitor and director at O’Donnell Solicitors, on 01457761883 for advice about divorce or any other family law matter.
