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Divorce in a Cold Climate: Recession and Relationships.
6 November 2008 :: Newbury Business Today; Newbury Weekly News 06.11.08

Recession. The word has finally been used by the Prime Minister and the Governor of the Bank of England. What impact does the present have on personal relationships?

Financial problems create stress which adds to tension in relationships. The cost of living is soaring as people feel less secure in their jobs. All this can increase the pressure on any couple. For some this ends in separation.

Specialist family law solicitor, Tony Roe, based in Theale, says couples should try and talk to each other. “Working long hours in the City, commuting from Berkshire, might mean that, for years, a couple have had little time for themselves with the weekends spent ferrying the children around. When redundancy hits, there is a seismic shift for a couple to cope with. Relationship counselling can help”.

If reconciliation proves impossible, then expert advice is needed. “Interim arrangements need to be resolved, including who pays the mortgage and the bills. Actually separating means that the family income has to cover two households”, says Tony. “The whole process of who should get what is based on mutual disclosure of the financial position of each of the spouses. There is only one shot at getting it right: an “ex-“ cannot normally come back after a final order has been made saying that they have changed their mind about its terms. Variation of maintenance is possible, though”.

Divorce in the current climate means up to date financial documents are crucial. “As pension pots reduce and share values plummet, anyone going through divorce needs to get accurate figures or risk giving away too much, or asking for too little. The fuller and more current their documentation, the less their solicitor will need to chase up and the cheaper the process will be”.

Separating now and agreeing to divorce in a couple of years’ time has its problems. “The divorce court does not rubber stamp any separation deed. It exercises its discretion to make a fair order based on the financial positions of the parties at the time of divorce not separation”, Tony adds.

Berkshire is a prosperous county and has many family owned businesses. “By the time accounts are filed at Companies House, they are way out of date” says Tony. “To get a proper picture of business one needs to see monthly management accounts or, failing that, company bank statements”.

Even when a couple have reached agreement there are further problems. Banks are not keen to lend, making it hard for one spouse to buy the other out. And that’s not all. “Where a house is put on the market it may remain in the estate agent’s window for a long time. Falling house prices mean that the matrimonial pot is smaller. However, applications can be made to the court for a declaration that a particular offer must be taken or even for the judge to sign the transfer if a party desperately needs the cash”.

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