Selling endowment policies could help a divorce run more smoothly

Publication date | 13/01/2010

The economic downturn has been blamed by some solicitors as they reason why financial agreements are taking longer to decide upon in divorce cases, a new study has revealed.

According to Unbiased.co.uk, two-fifths of solicitors have found that it has taken more time to reach a divorce settlement over the past year than usual. January is usually a busy month for divorce lawyers but it remains to be seen whether the recession will have an impact on the number of Britons who file for divorce.

Chris Radford, chief executive officer of aap, said some if its customers who were going through a divorce had sold their endowment policies so that their assets could be split.

Getting divorced during a downturn

The poll by Unbiased.co.uk discovered that 72 per cent of solicitors believe the current economic climate has shaped perceptions over divorce, with the main outcome being that ex-couples are taking longer to decide how to split their finances.

Almost half of legal professionals said some people were waiting for the economy to recover so that the value of their assets increased. Another concern may be how unsecured debt is split during a divorce.

If ex-partners took out a number of credit, store cards and personal loans while they were together, they may be concerned how the recession has taken a toll on their ability to repay what they owe.

Karen Barrett, chief executive of Unbiased.co.uk, said seeking professional advice is important if people want to get their divorces sorted out as quickly as possible.

"Getting a divorce can be a stressful enough process without also waiting to reach a financial settlement for a prolonged period of time. A family solicitor will help you through the divorce process and ensure you get everything you are entitled to from the final settlement," she advised.

Selling endowment policies to cover the cost of divorce

Mr Radford, from aap, said some if its customers had decided to use the money raised from selling an endowment policy to clear joint debt, allowing for a fresh start.

He added that should aap make an offer to purchase an endowment policy, it will always pay more than the surrender value offered by the insurance company.

Reasons to sell your endowment policy