If your getting divorced you’ll see that the process can leave both parties dangerously in debt. The emotional side of divorce can be awful, but it’s the money side that can be one of the most taxing aspects of separation. And tallying up the debts from the marriage can leave a big black hole in your finances.

Since in financial and emotional terms the whole divorce process can be expensive, there have been demands for a more understanding way to administrating the separation terms. The “Debts and divorce campaign”, has been released by the UK Insolvency Helpline to provide a organised approach in dealing with household debts. This is good news as 45% of people questioned said that seperation caused them more financial difficulties than redundancy or losing their partner.

In the questionnaire, thirty per cent of divorcees said that they needed professional debt counselling, while over a quarter found it a strain to adjust to having just one household income. In fact nine per cent had major problems managing their debts and had to contemplate bankruptcy.

The research which was commissioned by the UK Insolvency Helpline, has decidedly demonstrated that the expense of divorce can leave couples heavily in debt. 16% said they had used credit cards to purchase luxuries or holidays they wouldn’t have purchased if still married. This kind of spending can cause problems during the divorce negotiations.

Only 9% of divorcees said they had managed to control their finances during the seperation process and had arranged an friendly agreement. Of the 79% of those questioned who ended their marriages on good terms, almost all said that their finances now needed extensive review and reworking.

On average those divorcees who contacted the UK Insolvency Helpline had between £14,000 and £25,500 of unsecured borrowing, while 50% had debts of between £2,400 and £6,100, mainly resulting from the costs of moving.

Many divorcees questioned had entered into an Individual Voluntary Arrangement (IVA) which is a easier alternative to bankruptcy whilst still succeeding in greatly reducing debt levels.

When it came to practical information, many relied on the Citizen Advice Bureau, whilst some turned to colleagues and others went to counsellors or used support organisations.

A spokesperson for the UK Insolvency Helpline said, “We have released the Debts And Divorce Campaign to try and understand our callers’ spending patterns. We can then assist them in planning for the future so that they are able to keep their legal costs down as they are guided through the entire divorce process.”

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