Brits spend over £4 billion on divorce

This year will be remembered as the ‘big-money break up year’ with Paul McCartney, Reese Witherspoon and Britney Spears all announcing their marriages are over.

However it’s not just celebrities who are seeing divorce bills soar. New research out today reveals failed marriages are costing the nation a massive £4.3 billion - with almost two-thirds (£2.5 billion) being funded by couples’ personal savings.

Despite divorce rates falling, Norwich Union’s ‘Cost of Divorce’ survey reveals that couples now spend an average of £28,000 when a marriage ends - twice the amount spent in 2003.

And whilst separating couples traditionally sold their home to finance a divorce, Norwich Union’s research reveals that almost half (48%) of divorcees are opting instead to dip into an average of £8,000 of their personal savings.

A further two in five (40%) admit their divorce had a significant impact on their disposable income.

Other findings from the Norwich Union ‘Cost of Divorce’ survey revealed:

One in five (18%) divorcees admitted they treated themselves to something they would not otherwise have bought following their divorce and those who chose a makeover spent an average of £1,125 on updating their look

62% of couples had shared finances to dissolve on divorcing

British divorcees are embracing pre-nuptial agreements which have quadrupled in popularity in the last 3 years

Over half (52%) of divorcees would like to see current divorce laws changed to offer greater protection

Surprisingly, despite the soaring cost of divorce, an optimistic 45% of divorcees reported that they were still open to marriage

Simon Quick of Norwich Union, said: “Divorce is always a difficult time for families and can often be a long, drawn out process taking 12 months or longer to resolve. Not only is it an emotionally stressful time but the experience can add to money worries and increase pressure on the family wallet.

“We undertook this research to look at the financial effects of divorce faced by our customers, and with an average of £8,000 of savings being used by each divorcee, it is obviously important that we can help them plan for their future.”

Paul Westcott of divorce law firm Last Cawthra Feather added: “Changes in divorce law this year and high-profile cases have made couples more aware that if they do divorce, the process can be made easier by considering and recording what each partner brought to the marriage at the outset. We have seen a surge of interest in pre-nuptial agreements in recent months, and the outcome of the McCartney divorce could see them become the norm rather than only for the cynical.”