22 January 2018: Sadly, the first Monday back after the New Year break has been nicknamed ‘Divorce Day’. It is often the most common point in the year when one or both spouses decide that their promise of ‘I do’ changes to ‘I don’t’.
There were 107,071 divorces in 2016 (we won’t know the 2017 figures until October), an increase of almost 6% on the year before.
With divorce comes the unenviable task of splitting assets (houses, cars, pensions etc.) and debts (mortgages, loans, credit cards etc.). This is further complicated where children are involved: where should they live; where do they want to live; and how do you split any child benefit and the costs of raising the children etc. If an amicable agreement cannot be reached then the court will decide.
When the reality and magnitude of the divorce sets in, then comes the start, and hope, of moving onwards and upwards. However, that can be overshadowed by your newly found financial position.
Unmanageable debt often arises as a combination of the costs of living with one salary and having spent the savings (or 50% of them!) on moving home and divorce lawyers begin to bite. As is sometimes the way, you may not be able to meet all of your liabilities as and when they fall due. You may need to revisit your personal finances and cut back on things that were previously considered essentials.
If, after all of the necessary pruning, you still can’t keep up with your repayments you may need to negotiate terms with your creditors. We can’t solve all problems all of the time but with our experienced and knowledgeable team we can certainly either help you, or at least point you in the direction of someone that can. BRI Business Recovery and Insolvency have been dealing with personal and corporate debt related matters for many years so, if you are experiencing debt issues, please do get in touch with your nearest office for further guidance.