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.
- Norwich Union "Cost of Divorce" research reveals spending on break-ups doubles in three years
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 Ł4.3 billion - with almost two-thirds (Ł2.5 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 Ł28,000 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 Ł8,000 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 Ł1,125 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 three 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 Ł8,000 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.”
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For Norwich Union press office, contact:
Louise Soulsby
Telephone: 01904 452617/07800 699526
E-mail: louise.soulsby@norwich-union.co.uk
Cheryl Cox
Telephone: 01904 452 791/07800 695 275
E-mail: cheryl.cox@norwich-union.co.uk
Robert Pell
Telephone: 01904 452 659/07800 699 563
E-mail: robert.pell@norwich-union.co.uk
For Lexis PR, contact:
Catherine Greenwood
Telephone: 0207 908 6474
E-mail: cgreenwood@lexispr.com
Sara Barrow
Telephone: 0207 908 6481
E-mail: sbarrow@lexispr.com
Sharan Chaggar
Telelphone: 0207 908 6519
E-mail: schaggar@lexispr.com
Notes to editors:
- * This figure does not include allowance for inflation or population changes.
- Research was carried out on behalf of Norwich Union by The Survey Shop, who surveyed 400 divorced people nationwide, during October 2006
- Norwich Union undertook the last "Cost of Divorce" research in June 2003
- Other sources: ONS.
'Cost of divorce’ calculator 2006:
| Cost | Average amount per person | Proportion who spent | National cost |
| Legal fees | Ł1,818 | 51% | Ł283.142m |
| Maintenance payments | Ł3,456 | 22% | Ł232.187m |
| Setting up a new home | Ł5,146 | 41% | Ł644.309m |
| Child care costs | Ł196 | 12% | Ł7.183m |
| Buying a second car | Ł3,221 | 14% | Ł137.708m |
| Treats: ie holidays, shopping spree etc | Ł2,335.68 | 18% | Ł713.270m |
| First year’s mortgage or rent | Ł6,000 | 28% | Ł513.038m |
| Personal savings | Ł16,660 | 48% | Ł2.442bn |
| Total |
|
| Ł4325.317m (Ł4.3bn) |
| Cost | Average amount per person | Proportion who spent | National cost |
| Legal fees | Ł1,668 | 52% | Ł272.351m |
| Maintenance payments | Ł3,324 | 15% | Ł156.560m |
| Setting up a new home | Ł2,638 | 51% | Ł422.449m |
| Child care costs | Ł1,685 | 16% | Ł84.654m |
| Buying a second car | Ł3,358 | 12% | Ł126.529m |
| Treats: ie holidays, shopping spree etc | Ł6,510 | 16% | Ł327.068m |
| First year’s mortgage or rent | Ł6,000 | 35% | Ł659.400m |
| Personal savings | Ł6,250 | 41% | Ł804.625m |
| Total |
|
| Ł2049.011m (Ł2bn) |
About Norwich Union
Norwich Union is the UK’s largest general insurer with a market share of around 15%, with a focus on insurance for individuals and small businesses.
It is a leading provider of life, pensions and investment products and one of the largest financial adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
Norwich Union’s news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media
About Last Cawthra Feather
Last Cawthra Feather, a Legal 500 firm with offices throughout Yorkshire, has 14 partners and 135 employees. Visit www.lcf.co.uk for more information.