Divorce rate 'could slow during credit crunch'

Divorce rates could slow down further during the credit crunch as separating couples find it more difficult to sell their assets, it has been claimed.

According to Consilium Financial Planning, the decline in the housing market could cause financial problems for those planning to get divorced and divide their assets.

Kevin Morgan, managing director of the financial advisory firm, explained: "Invariably the equity in the relationship is property and if it can't be sold, it's substantially more difficult to release funds."

He said that before the credit crunch began, remortgaging was an option, but the tightening of mortgage funds means this avenue now leads to a "cul-de-sac".

Figures from the Office of National Statistics show that in 2006 the divorce rate in England and Wales fell by seven per cent compared to the previous year.

Divorce rates are now at their lowest level since 1984, the data reveals.

Published on: July 28, 2008

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