Money Box Live: The Cost of Splitting Up

Money Box

BBC

Business

4.2 • 804 Ratings

🗓️ 5 June 2024

⏱️ 29 minutes

🔗️ Recording | iTunes | RSS

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Summary

This week marks two years since the historic reform in family law, known as the 'no fault divorce', was introduced. It was aimed at reducing conflict during separations and meant that couples could divorce without the need to apportion blame for the breakdown of their marriage. This change led to a surge in new applications at the time.

Divorce itself hits the bank balance with annual incomes falling by an average of £9,700 in the year after separation, according to Legal & General. From living together to sharing bills, sharing debts and sharing accounts, the financial implications can be significant.

In this Money Box episode we're looking at how to separate your finances after a split, and if you are breaking up, at what point should you make up a financial plan?

Felicity Hannah is joined by Gary Rycroft, Senior Partner at Joseph A Jones, and Sarah Coles, Head of Personal Finance at Hargreaves Lansdown.

Presenter: Felicity Hannah Producer: Amber Mehmood Editor: Sarah Rogers

(This episode was first broadcast on the 8th May 2024).

Transcript

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0:00.0	On a winter's night in 1974, a crime took place that would obsess the nation.
0:07.0	It was an extraordinary news story.
0:09.0	The story of an aristocrat, Lord Lucan, who's said to have killed the family Nanny,
0:14.0	mistaking her for his wife, then somehow just disappeared.
0:18.0	One of the great mysteries in English criminal history. We're still looking for
0:21.7	Lucan. It's honestly one of the most powerful stories of my lifetime. I'm Alex Fontunzelman. This is
0:27.8	the Lucan Obsession. Listen on BBC Sounds. BBC Sounds, music, radio, podcasts. Hello, welcome to the Moneybox Live podcast. Breaking up is
0:40.2	hard to do. I think it was Neil Siddaka who sang that, although he didn't go on to sing about
0:44.6	things like separating bills and dividing up pensions, but splitting up a couple's finances is also
0:51.1	pretty hard to do. This week, it's two years since a change in the law meant couples in
0:56.6	England and Wales can apply for a no-fault divorce, meaning ending a marriage has become less adversarial,
1:03.2	but it can still be complicated and it can still be emotional. And whether you're married or
1:08.3	cohabiting, breaking apart your finances can be challenging and there can be pitfalls.
1:13.8	There can also be some pretty significant costs.
1:16.8	In fact, people report being almost £10,000 worse off in the year following a separation.
1:22.9	That's according to legal and general.
1:24.8	So on today's Moneybox Live podcast, we're looking at how to separate
1:28.1	your finances after a split and at the financial fallout. Let's start with a voice note sent in by
1:33.9	Ben. My wife and I separated mid-2020 and fortunately it was fairly amicable. Due to our circumstances,
1:41.8	most of our equity was locked in our house, and neither of us
1:44.6	earned enough money to buy the other one out.
1:46.7	We explored the option of one person moving out and renting, but it was only borderline
	...

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