Divorce rates set to soar in the new year

Publication date | 06/01/2009

The current economic downturn is prompting a noticeable rise in divorce rates, according to new research released yesterday (December 23rd).

The Local Government Association (LGA) conducted a survey which found that 93 per cent of local authorities have reported an increase in demand for relationship counselling since the start of the credit crunch.

Furthermore, the study showed that the stress and financial pressures associated with Christmas traditionally leads to a 50 per cent jump in new year divorces, with that figure expected to be "even more" next month.

LGA chairman Margaret Eaton said: "These figures demonstrate the effects the credit crunch and the recession are having on families across the country.

"From fears about debt to cash worries putting strains on relationships, people are feeling the pinch."

According to aap, the UK's largest endowment policy buyer, getting divorced is one of the main reasons why people decided to get rid of their endowment policies.

With divorce rates on the up and many policies underperforming as they approach maturity, the company has found that some people have been getting more money by selling them, rather than surrendering them back to the life company.

As one aap customer explained: "I sold my policy through aap as the wife and I are splitting.

"It was a fast service and we got over £1,500 more than our quoted surrender value, plus a £100 Sainsbury's gift card."

The LGA is a voluntary lobbying organisation which was created in 1997.