Divorce increase as couples 'accept' prolonged downturn

The number of people getting divorced is on the increase as couples who had put it off because of the credit crunch accept that the downturn is likely to be prolonged.

Top Devon divorce lawyer Liz Allen from Stephens Scown solicitors in Exeter said couples who had put their marital home on the market at an unrealistic price were now making the ‘mental adjustment’ to the credit crunch and cutting their losses.

She said: "Last year we saw a lot of separating couples, especially with properties worth more than £1 million, forced to cohabit because they had unrealistic expectations about their property’s worth in a falling market, and couldn’t sell. Nor could they get mortgage finance for new homes or to buy their partner out.

"What we’re seeing now is an increase in divorce instructions as couples accept that the market isn’t going to pick up for some time, so they might as well get on with it."

Liz, who is ranked among the top divorce lawyers in the South West in the Chambers and Legal 500 guides to the legal profession, said efforts to free up the mortgage market were also impacting on divorce rates.

"If the Government’s efforts to restore liquidity mean that banks start lending, then we would expect to see a surge in divorces because people will be able borrow again to start afresh, and it’s actually a good time to buy property for those who have the cash."

Liz added that many wealthy men and women believed now was a good time to divorce because their assets – be they property, stocks and shares, or even businesses – would be worth much less now than they were a year ago, reducing the cost of a settlement. But, she said, their spouse would take the opposite view because they stood to gain less.

Stephens Scown has offices in Exeter, Truro and St Austell. Its family team advises clients on a wide range of family law including matrimonial and partner issues including separation, divorce and civil partnerships, family finance and child access.