- Average divorcing couple has assets worth over £230,000
- January is one of the busiest times of the year for divorce lawyers.
- Over 140,000 couples could get divorced during 2007
Analysis of industry data* by MoneyExpert.com reveals that collectively they could have more than £32.2 billion of assets to divide between them or over £230,000 per couple.
In terms of how an average coupleís wealth is broken down, the largest asset is property which accounts for around 35.8% of their wealth or around £82,000.
This is followed by around 28% or some £64,167 in pensions and around 9.8% or £22,500 in cash.
ESTIMATED ASSETS OF DIVORCING COUPLES
|Asset||Estimated percentage of wealth invested in this asset||Estimated value of wealth tied-up in this asset|
|Total net capital value||†||Over £230,000|
Sean Gardner, Chief Executive of MoneyExpert.com said: ìChristmas can often be the final nail in the coffin for a troubled marriage because the extra time couples spend together can result in problems in the relationship coming to a head. This might explain why divorce lawyers tend to see an increase in inquiries during January.
ìDivorce can result in huge emotional turmoil for the couple, but also their family. It can be made all the worse by increased financial pressures following a separation or divorce. Also financial problems can be a significant factor behind marital breakdown and to help avoid this, itís important for couples to be honest and open with each other about their finances.”
MoneyExpert.com has issued five ëkey considerationsí for divorcing couples:
1. You will have to close joint bank accounts and set up new accounts in your own name. This may prove difficult in the early stages of separation as proof of address is often required and one partner will have left the marital home.
2. Keep an eye on your credit rating as your partnerís credit history may be held on your file for a significant period after the separation and could affect any applications for credit. Check on www.creditexpert.co.uk.
3. Remortgage and loan applications are not now judged on joint salary income and may take into account any maintenance payments. If you need to rent a property until the divorce is finalised, your credit rating could suffer as tenants frequently find that they are not offered as large a loan as homeowners.
4. Cancel your joint credit and debit cards to avoid arguments at a later stage.
5. Renew your PIN numbers.
* This is based on IBM data, ONS Pensions Trend report and the latest annual IHT returns to the Inland Revenue.