Monday, 9 February 2009

Credit crunch takes its toll

Business people struggling to cope with the tightening credit crunch are turning to the divorce courts for help, according to a Telford solicitor.

Nadia Davis, who leads our Family Team, said since the start of the year, there had been a huge increase in the number of wealthy people seeking a divorce.

“We’ve been inundated with enquiries from people who have either been made redundant, or who are worried they may lose their jobs, who are suddenly splitting from their partners. Their philosophy is that they know they will probably be asked to pay out smaller settlements if they are no longer earning the kind of big money salary they have done previously.

“And for some people facing the end of their marriage, they have no option but to continue to live with their estranged partner because the struggling property market means they cannot sell their house. Some people are even consciously trying to complete their divorces as quickly as possible, before the downturn gets any worse, in order to save their homes from being repossessed.”

But Nadia said it was important that families thought things through extremely carefully before taking drastic action which could have serious consequences.

“The Recession is definitely biting now, and many people are struggling to see a way forward both financially and emotionally. But it’s crucial that couples don’t just rush into a divorce in a bid to beat the credit crunch – every step must be taken slowly and deliberately, in order to ensure the right result for your family.”