More than half of divorcing couples now fear the end of a marriage, meaning they will struggle to afford basic groceries even in old age
Divorce is already a traumatic experience – but more than half of divorcing couples now fear that the end of a marriage means they will also struggle to afford basic groceries in old age.
New research by insurer Scottish Widows has found that 59 per cent of divorced couples believe they will be able to afford just a weekly food budget of £54 after retirement – compared to just over a third of married couples who believe they will have a hard time will have.
With inflation stubbornly high, that means there’s nothing left for those little luxuries in life like a box of chocolates or a bottle of bubbly, but only the basics of bread, milk, eggs, meat, fruits and vegetables.
According to data aggregator NimbleFins, we each spend an average of £44.70 each on weekly shopping and eating out.
Scottish Widows also found that more than a third of those asked about their finances if they divorced said they would not be able to afford to drive a car after retirement and would be dependent on public transport, family and friends.
Divorce: New research has found that 59 per cent of divorced couples believe they will only be able to afford a weekly food budget of £54 after retirement
Nearly half also said plans to enjoy a holiday abroad should be shelved, while 46 percent said an annual staycation is all they can afford.
Scottish Widows believes that the bleak future facing many divorcing couples highlights the importance of ensuring retirement planning takes into account the assets of both parties, including any retirement plans.
Pete Glancy, head of pensions policy at Scottish Widows, says: ‘Around 42 per cent of marriages end in divorce – but around a third of divorcees did not discuss retirement savings and pensions as part of their settlement, despite the huge impact on their retirement lifestyle. ‘
He adds: ‘Our research shows that much more needs to be done to ensure that pensions are treated as an important part of divorce proceedings. The problem also disproportionately affects women, as they are more likely to be the ones who interrupt their full-time jobs to take care of the children and thus miss out on pension contributions.’
The number of divorces is also expected to increase due to the introduction of the ‘no fault’ law last year. Divorce can now be granted to couples in England and Wales on the grounds that their marriage has broken down irretrievably, without any blame.
Prior to April 2022, adultery, unreasonable behavior or abandonment usually had to be listed as one of the reasons – either if the couple had been separated for two years by mutual agreement or five years if one partner did not want the other to get out of the marriage.
In Scotland and Northern Ireland, the grounds for divorce have not changed – an ‘irretrievable breakdown of the marriage’ can still be attributed to reasons such as adultery and unreasonable behaviour.
But in Scotland, a divorce petition can be filed one year after cohabitation with consent or two years without. For Northern Ireland it is two years with permission and five years without.
A spokesman for the Law Society of England and Wales says: ‘By replacing grounds for divorce previously assigned to guilt, you remove a factor that can create a potentially hostile environment – making it all the more likely to be dragged into protracted, expensive legal proceedings. .
“It allows couples to focus more on how to divide their wealth fairly.”
A court fee of £593 is required to file for divorce and lawyers’ fees typically cost around £14,500. With legal fees often starting at £200 an hour, the cost per couple quickly adds up when redistributing joint finances.
Despite the fact that the home is usually the largest asset, pensions are often undervalued. There are three main ways to distribute pension pots. Firstly, they can be divided before retirement, although this would require a court order which could cost £2,000.
Secondly, a ‘pension garnishment’ can be made to reserve a percentage of one’s future pension for the other partner upon retirement.
Finally, there is the ‘pension settlement’ whereby one partner keeps the pension pot, but has to exchange it for the value of the home.
To get a real value from a pension, you’ll need to seek help from a financial adviser – which typically costs £150 an hour. You can find an independent financial advisor by visiting the trade association’s website unbiased.co.uk.