The last couple of years have not been easy for anyone, and that’s undoubtedly true regarding finances. The pandemic and the after-effects have had a significant toll on the income of many families. Then there are the increasing everyday costs of food, fuel, and utilities – all of which are driven by some of the highest inflation rates we have seen for a long time.
When you add in the potential for increased rental or mortgage costs driven by higher interest rates, it is undoubtedly true that family finances have taken a significant blow. Unfortunately, the predictions are that, for the near future at least, even more belt-tightening will be the order of the day as the cost of living crisis takes an ever tighter hold.
Here, we ask the experts at O’Donnell Solicitors what some of the consequences of the cost of living crisis are for couples.
Table of Contents
Money tensions
Unfortunately, there are strong links between finances and mental health. When money issues start to bite, stress levels will likely increase, which can significantly strain any relationship. Worries around finances can easily lead to disagreements as couples try to prioritise where to spend and where to save.
In a relationship that is already under pressure, these financial issues can be the thing that finally breaks things. Even couples who have not been having disagreements in their relationship may find that the impact of financial stresses can cause them to drift apart.
The financial worries of a mortgage
Increases in living costs are happening in all aspects of life, and splitting up and having separate properties may not be an option financially for many couples. Even when a relationship is already at breaking point, the implications of increased prices may lead to some couples remaining together. This can cause unimaginable pressure on an already tense relationship, which can damage children. It is essential to consider any children in the relationship and prioritise their well-being and needs.
Unfortunately, in these circumstances, there is an increased risk of abuse, with the financial stress of being unable to leave and living with an abusive partner making life, at times, almost impossible.
Financial abuse is genuine and can become exacerbated in times of financial crisis as the abuser seeks a greater hold over the other person. It is essential to prioritise well-being and seek help if this is the case rather than believing the only option is to stay.
Re-evaluate your situation
If your relationship is struggling, whether you are struggling with finances or are part-way through a separation, it might be a good idea to rethink your financial position. Unfortunately, financial experts are predicting that the increases in interest rates and prices are not yet finished. This is already impacting the housing market and will likely affect it further. If you had been contemplating a re-mortgage as part of your separation, you might need to rethink your plans. If a house sale is agreed for a date in the future (as part of a Mesher Order), then it is a good idea not to state this as a fixed lump sum but rather a percentage of the house’s future value.
The financial climate is complex, so no matter your circumstances, it can be a good idea to seek the advice of an independent financial advisor (IFA). It would help if you appointed a family lawyer with experience assisting clients with financial settlements and divorce.
