Covid-19 has caused a spike in divorce – here's how to cope
Lockdown has caused a spike in people filing for divorce. But splitting up involves some arduous administrative tasks. Here's what to do.

B
eing trapped at home with a partner during lockdown has clearly proved hellish for many couples. The number of people inquiring about a divorce rose by 42% between 23 March and mid-May, according to Co-op Legal Services.
“Concerns about finances, employment, coupled with the fact that households are having to spend an increased amount of time together can add strain on relationships,” says Tracey Moloney, Head of Family Law at Co-op Legal Services.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
If you are emerging from lockdown with divorce on your mind there is much to consider. “Negotiating a divorce at times of economic stability is difficult enough. As asset values fluctuate in the wake of the coronavirus crisis, the task of figuring out a fair split is made harder still,” says Lucy Warwick-Ching in The Financial Times. “Whether you are simply contemplating divorce or have come to the end of the road in your relationship, there are numerous financial and practical aspects to be considered in deciding to untie the knot.”
One main issue is splitting what you own. In most divorces all assets accrued during a marriage are divided equally. The easiest way to proceed is to agree to divide assets by percentages.
“For example, cash from the sale of the family home can be split as a percentage of the sale proceeds rather than a fixed sum of money to ensure both parties share in the upside or downside of the property market,” says Warwick-Ching.
When splitting your assets don’t forget about your pensions. “Pension pots are usually the most valuable asset, apart from the family home, yet only seven in ten divorce settlements take them into account,” says Kate Palmer in The Times.
This means women typically pay a huge price for their divorce when they retire. The average 65-year-old divorced woman has a pension plan worth £26,100, compared with £103,500 for a divorced man.
“Women contemplating divorce must ensure that they are aware of their own and their husband’s pension savings and likely outcomes in retirement,” says Philip Way, a partner at law firm Mills & Reeve. “Many women have found that, in keeping the house and not looking carefully at pensions, they have put themselves in a poor position for the long term.”
Weighing up the value of the family home versus pension savings is particularly difficult at present. Stockmarket falls may have affected your pensions, but on paper the family house is still holding its value. You could wait in the hope that the pension will recover, but in the meantime the value of your house could fall.
“Not being able accurately to predict the future makes it impossible to identify the perfect time to start divorce proceedings,” says Sarah Coles from Hargreaves Lansdown in The Financial Times.
If you do decide to go ahead with your divorce, then Covid-19 shouldn’t cause any delays. Throughout lockdown “divorce proceedings have been going ahead over video conferencing calls while the courts have been closed”, says The Daily Telegraph. Most proceedings don’t need a court hearing, however, and the Ministry of Justice has not noted any slowdown in the time taken to process divorces.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Ruth Jackson-Kirby is a freelance personal finance journalist with 17 years’ experience, writing about everything from savings accounts and credit cards to pensions, property and pet insurance.
Ruth started her career at MoneyWeek after graduating with an MA from the University of St Andrews, and she continues to contribute regular articles to our personal finance section. After leaving MoneyWeek she went on to become deputy editor of Moneywise before becoming a freelance journalist.
Ruth writes regularly for national publications including The Sunday Times, The Times, The Mail on Sunday and Good Housekeeping, among many other titles both online and offline.
-
What makes you wealthy in the UK? Could it make you a target in Rachel Reeves’ Budget?
Wealthy Brits could be at risk from a Budget tax raid – but how much money do you need to be considered wealthy in the UK?
-
More retirees are buying inflation-protected annuities. What are they and how do they work?
Sales of annuities where the income on offer increases every year have surged – and more people are also taking up enhanced rates that are higher due to illness
-
'Gen Z is facing an AI jobs bloodbath'
Opinion It has always been tough to get your first job, but this year, it's proving tougher than ever. AI is to blame, says Matthew Lynn
-
Beazley: a compelling specialist insurer
The insurer Beazley is unusually profitable at present, and that looks set to continue. The stock is also a valuable portfolio diversifier, says Jamie Ward
-
Is Britain heading for a big debt crisis?
Opinion Things are not yet as bad as some reports have claimed. But they sure aren’t rosy either, says Julian Jessop
-
What is the Enterprise Investment Scheme and should you have one?
The Enterprise Investment Scheme is tax-efficient and potentially lucrative. Taking a chance on the scheme could trim your family’s IHT bill, says David Prosser
-
What are wealth taxes and would they work in Britain?
The Treasury is short of cash and mulling over how it can get its hands on more money to plug the gap. Could wealth taxes do the trick?
-
Self-employed? Start saving for your pension now
Britons who are self-employed have neglected to build up their retirement fund. They must act now
-
Why is Britain's industrial base crumbling?
Opinion More and more factories in the UK are closing, and the government doesn’t seem to care. What’s going on?
-
Scotland's former first minister Nicola Sturgeon leaves behind a toxic legacy
On the left, Nicola Sturgeon is seen as something of a political hero. That makes sense… but only if you exclude her actual record in office