Credit crunch affecting divorce

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Credit crunch is forcing divorced couples to stay in the same house

Separating couples are being forced to continue living together due to housing and mortgage problems caused by the credit crunch, a divorce expert said.

Mark Keenan, of online divorce service www.divorce-online.co.uk, said increasing numbers of couples in the process of divorce were unable to sell their matrimonial homes because of the slow-down in the property market. Tightened lending restrictions meant neither party could secure a mortgage to enable them to buy their former partner's share of the property - leading to the estranged couple having to remain living in the same home.

Mr Keenan said: "For most couples, this is going to be a very difficult period because, with their main asset being significantly reduced, the value has started to go down significantly and it means that there will be less money available to re-house both parties and any children. It is taking much longer to sell the property, and it is increasing pressure on the couple who are still forced to continue living together in the same house because they just can't afford to live separately.

Mr Keenan also believes that the divorce rate, which has been falling for the last decade will begin to rise again and points to the years 1990-1994 when the divorce rate rose only to fall back again as labour came into office and the economy improved.

As reported on ‘divorce online’, the UK’s leading divorce resource.