Credit crunch 'may result in lower divorce rate'

By Jonathan Dawes, Mon 28 Jul 2008 - Published in Mortgages

Married couples may end up staying together longer as a result of the credit crunch, Consilium Financial Planning claims.

As it becomes harder to secure home loans and the housing market slows, selling property becomes more difficult.

Managing director of Consilium Financial Planning Kevin Morgan said the equity in most relationships is tied up in the family home.

Therefore, if people cannot sell their home they are more likely to stay together.

Mr Morgan added remortgaging "pre credit crunch was an option, but with the tightening of mortgage funds this avenue leads to a cul-de-sac."

Figures compiled by the Office of National Statistics reveal the divorce rate in England and Wales dropped in 2006 by seven per cent to its lowest level since 1984.

Those aged under-40 saw the steepest fall in divorce rates. The number of men divorcing in this age category dropped by ten per cent compared with 2005, while the number of women legally separating from their partners fell by nine per cent.

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