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28 July 2008

Even the rate of divorce in the UK could be affected by the credit crunch, according to one expert.

Kevin Morgan, managing director of Consilium Financial Planning, said split rates could fall due to the slowdown in the housing market.

Earlier this month Bloomberg reported divorce rates in London's financial district were expected to rise, with spouses seeking settlements before the impact of the slowdown affects their partners' salaries.

But Mr Morgan's comments seem to suggest divorce lawyers in other areas could be less busy.

He said: "Invariably the 'equity' in the relationship is property and if it can't be sold, it's substantially more difficult to release funds."

Mr Morgan added remortgaging was an option before the credit crunch, but said this avenue now leads "to a cul-de-sac" due to a tightening on lending.

According to the Office of National Statistics, the provisional divorce rate in England and Wales fell for a second consecutive year in 2006 to 12.2 divorcing people per 1,000 of the married population in 2006. The divorce rate is now at its lowest level since 1984.

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