Divorce, as matters currently stand, is one of the main reasons of financial problems in the
The Figures
The UK Insolvency Helpline and the popular site Divorce Aid have started the 'Debts and Divorce Campaign'. The aim is to assess the gravity of the situation and help the debtors to manage their accounts better, as well as know how to avoid or lessen such pitfalls in the future. Let us hope that this will encourage more government - private group joint ventures to help affected people. To start with this, they did a survey of the situation, revealing shocking and depressing facts. 45% of the divorcees agree that divorce costs them more than bereavement or illness. 36% have incurred heavy personal debts, and 30% confessed that they need professional advice to help them out of the mess. 28% found it hard to adjust to a single income household after the split, while 10% have given up and filed for bankruptcy. The surprising part is that those in debt are not necessarily spouses who have fought and lost acrimonious court battles. There are many who have actually won the case and then fallen into bad times! Let us first see who can gain out of a divorce and how.
The Winners
Under the existing laws of the land, there are certain cases where one may gain in terms of property and money from a divorce. Below is a list of such circumstances where one may win some thing out of losing a partner.
- Pensions and Maintenance: If the spouse concerned has contributed substantially to the growth of the other partner's wealth, then that money has to be shared on divorce. We all know of Mrs. Miller, who won a hefty portion of her husband's fortunes as she had helped in building it. Another notable case this year has seen a property tycoon parting a good third of his vast empire in the form of money and property to his wife of many years, whom he had unwisely cheated for a younger woman. There are also those who have spent a part of their life, and given up on their own careers to build and consolidate their spouse's, and they can rightfully claim a justified pension and yearly maintenance. Those who are unfaithful in their marriage need to be extra careful in this case, since they are usually not great candidates for sympathy among the jury. If you lose a case, injury will be added to the insult, as the laws demand that you pay part or the full cost of your partner's legal expenses.
- Child Maintenance: The partner who wins custody of the child is usually to be paid a maintenance charge by the other partner, unless the person concerned is found unfit to provide the said amount. This amount, the interval at which it is to be paid, and all other clauses pertaining to it are to be decided by the court on the basis of a claim put in by the applicant and verified by the court. The situation is particularly bad here, as thousands of absconding parents are being chased by the CSA (Child Support Agency), and there are many single parents who have simply given up after waiting around for such a long time, that the wait itself became useless.
- Property: Just like money, if one spouse has helped in building the property, then he or she has a claim on it. The question of inheritance is also involved in this matter. If the property is ancestral, then dividing it can be very complicated. There is the need to review and draw up wills in regard to property always. Sometimes, a spouse may be allowed to keep the house because he or she has won the child custody, or the other spouse wants to move. If the spouse concerned has been paying the bank loan instalments for a particular property, it may go to him or her after divorce. In some cases, the house is sold and the money divided among the partners.
The winner would be someone who can manage the new property and income tax, maintenance costs and has a well planned finance management scheme ready. Otherwise, you could be a 'loser' as you get swamped by unforeseen expenses of your new fortune.
