Shelter Report finds 3.6m people continue to live together after Separation
A report by housing Charity Shelter found that 3.6million people are still sharing a home with their ex as a consequence of the recession.
Mark Mosley head of Family law at Vincents explains the reasons behind such a predicament for separating couples are a complex combination of factors.
A very slow housing market means that the couple’s main asset is taking a lot longer to sell and free up capital which would enable them to afford to move on. In addition the rental market is buoyant which results in high rents being sought by landlords. If you are still paying for the marital/relationship home it is unlikely for most couples they can afford additional rent on top.
Furthermore incomes have been squeezed significantly over the last few years often meaning that couples need their joint income to afford to run the jointly owned property.
Whilst in the past one would have seen people borrowing to tide them over this difficult time of separation/divorce such borrowing is not an option these days.
The reality is not itself the cost of separating / divorce but being realistic on house prices. Whilst it’s natural for anyone to seek the best price possible for their house that has to be weighed against the effect of continued cohabitation has upon children and the separating couple. Mark adds It might be easier to ask one party to leave but in reality that adds further financial pressure which is often more difficult and stressful to manage than continued cohabitation. It is far better to agree a marketing strategy for the house being realistic about price and price reduction if the property is sticking on the market.