Divorce, a life-changing decision, has become a financial hurdle for many couples. With rising living costs and the expense of legal proceedings, financial concerns are causing delays in separations. A recent study by Legal & General Retail revealed that nearly one in six divorces in the last five years was postponed due to money worries.

Interestingly, the survey found that financial uncertainty is not just about splitting the assets. It also involves grappling with the hidden costs of starting over. Couples are finding themselves stuck, not because they want to reconcile, but because they can’t afford to part ways.

Why do Financial Concerns Delay Divorces?

Financial concerns are the top reason divorces are getting delayed. Rising living costs mean splitting one household into two is no small feat. For many couples, the thought of doubling expenses for housing, utilities, and daily essentials creates an unbearable financial strain.

However, it is not just about dividing a home. It is about maintaining two separate lives, which often feels impossible in today’s economy.

Mikhail / Pexels / Legal fees, court costs, and mediation services are expensive. Many people simply can’t afford these services upfront.

This forces them to delay their separation, creating a frustrating cycle of waiting in which couples remain in limbo, often prolonging emotional and financial strain.

Unequal Financial Splits and Their Consequences

Divorce isn’t always fair, especially when it comes to finances. Legal & General Retail’s study showed that two out of five divorcees felt the financial split was not equal. Often, one partner walks away with more resources, leaving the other struggling to rebuild their life.

This imbalance can worsen the financial burden, especially for those who took on unpaid roles like childcare during the marriage.

Apart from that, pensions – arguably one of the most significant assets – are frequently overlooked. Only 13% of divorcees considered pensions during their settlement compared to 50% who focused on dividing the family home. This oversight can leave one partner financially vulnerable in the long run, particularly in retirement.

For many, this financial oversight is a costly mistake that is not realized until it is too late.

Living Costs Force Couples to Stay Together

Rising living expenses are another major reason divorces are getting delayed. Housing costs, in particular, are a huge barrier. Many couples can’t afford to sell their home and move into two separate properties. Staying under one roof becomes a necessity, even if it is emotionally taxing.

The post-divorce cost of living doesn’t just hit the pocket. It impacts mental health too. Many people remain trapped in unhappy marriages simply because the financial implications of leaving feel insurmountable. It is a sad reality, but money often outweighs the emotional toll of staying together.

Vera / Pexels / The survey reveals that divorcees often forget key financial details, which worsens their situation.

The Cost of Forgetting the Details

The financial concerns tied to divorce don’t end when the paperwork is signed. Post-divorce, many people forget to update key documents. The study revealed that 11% of divorcees didn’t remove their ex-spouse from their will, and 10% failed to update life insurance beneficiaries. These oversights can lead to unintended inheritance disputes and unnecessary complications.

Forgetting these financial details is not just a simple mistake. It can have far-reaching consequences. Divorce is a time to reassess everything, from assets to documents. Failing to do so can leave one’s financial future in jeopardy, a costly misstep in an already expensive process.

Women Often Bear the Brunt

The financial burden of divorce often falls harder on women. Many women take on caregiving roles, which can limit their earning potential and retirement savings. When the marriage ends, they are often left with fewer resources to rebuild their financial independence.

This disparity is further exacerbated when pensions are ignored during settlements. For women who stayed home to raise children, their retirement pot is often significantly smaller than their partner’s. Without equitable consideration of these assets, financial hardship becomes a very real possibility.