How To Avoid Divorce Due To The Cost Of Living Crisis

The Big Issue newspaper defines a cost-of-living crisis as "a scenario in which the cost of everyday essentials like energy and food is rising much faster than average incomes." Money worries can create huge pressures on relationships; therefore, it is crucial to know how to navigate tough economic times as a couple. Whilst we are far from marriage counsellors, our experience as Divorce Law Solicitors has provided insight into behaviours that can tear marriages apart and those that can help couples stay together during a cost of living crisis.

How does a cost of living crisis impact relationships?

Primarily, money is an essential part of daily life, and managing it can be a significant source of stress for couples. Disagreements about how money should be spent, saved, or invested can lead to intense arguments and resentment. Couples may find themselves at odds over fundamental financial decisions, such as budgeting, major purchases, or debt management. These conflicts can escalate quickly, creating an atmosphere of tension and hostility.

Furthermore, differing financial priorities and values can exacerbate money-related problems in a marriage. In most marriages, one spouse is usually a spender and the other a saver. These contrasting attitudes towards money can lead to rows and couples believing they are incompatible.

Another significant issue that arises from marital money issues is the lack of financial transparency. In some cases, one spouse may hide financial information, debts, or spending habits from the other, eroding trust in the relationship. The discovery of hidden debts or financial secrets can be devastating and may result in feelings of betrayal and deceit. This breach of trust can create irreparable damage to the marriage, making divorce seem like the only viable option.

In addition to trust issues, financial problems can also affect communication within a marriage. Couples who struggle with money often find it challenging to have open and productive discussions about their financial situation. Instead of addressing the issues as a team, they avoid talking about the matter altogether and gradually drift apart.

Finally, the consequences of money problems can extend beyond the couple themselves. Financial instability can affect the entire family, including children, who may experience a lower quality of life due to financial constraints. Arguments about money in front of children can also have a lasting impact on their emotional well-being and may contribute to a sense of instability and insecurity.

How can couples prevent the cost of living crisis resulting in divorce?

Avoiding divorcing over money issues and the cost of living crisis can be difficult, especially if your marriage was rocky before prices began to rise. But with commitment and hard work, you can both emerge from this period (which thankfully seems to be coming to an end), stronger than ever.

Below are some top tips on surviving the cost of living crisis from our Divorce Law Solicitors:

• Talk, talk, and talk some more. Be open and honest about money. Discuss your financial goals, concerns, and expectations regularly. If you are both exhausted in the evening, try having a ‘family finance meeting’ in the weekend, ideally away from the home, for example in a café. It does not have to last long; what matters is both of you have an opportunity to examine the household budget and discuss any concerns.

• Work together to set common financial goals. Whether it is saving for a home, retirement, school fees, or a holiday, having shared objectives can strengthen your financial partnership.

• Create a household budget that outlines income, expenses, and savings goals. Review and update the budget regularly to ensure you are on track. Make decisions about spending and saving as a team. For instance, you may decide that neither one of you can purchase anything over £100 without consulting the other spouse.

• Be transparent about your personal financial situations and do not indulge in secrecy, especially concerning debts.

• It may take time, but creating an emergency fund to cover unexpected expenses can significantly reduce stress and prevent conflicts when unexpected bills arise.

• Clarify each other’s financial responsibilities. For example, establish who is responsible for paying bills, keeping track of incomings and outgoings, and future big-ticket purchases such as a new fridge or car.

• Develop a strategy for managing and paying off any existing debts. Prioritise high-interest debts and work together to reduce and eliminate them.

• Create a plan for saving and investing for the future. Diversify your investments and seek professional advice if needed.



• In some cases, drawing up a Postnuptial Agreement can help clarify financial expectations and protect individual assets. Do not be afraid to explore this as an option.

Final words

The cost of living crisis has the potential to wreak havoc on a marriage, leading to trust issues, communication breakdowns, emotional distress, and ultimately, divorce. The impact of financial stress on a relationship should not be underestimated, as it can touch every aspect of a couple's life, from their day-to-day interactions to their long-term plans for the future. However, open communication, being ‘on the same page’ when it comes to financial goals and spending, and working together as a team can result in your marriage becoming stronger.

For a free consultation to discuss your divorce or dissolution, including any child or financial arrangements, please call our understanding and caring family law team on 0208 300 6666.