17 July 2006
The UK's spiralling debt problem is being exacerbated by the number of marriages that end in divorce, according to a new report.
Advice firm Debt Free Direct claims that in 28% of all bankruptcies the underlying financial problem was caused by an ex-partner's excessive debts.
People going through divorce proceedings are a third more likely to suffer financial ruin, it said.
Women are at a higher risk of having no option but to declare bankruptcy than men, with 14% more female UK residents facing insolvency than their male counterparts.
Problems often arise as a result of people being unaware of their ex-spouses' debts.
"Typically, people in a relationship will take on debts in joint names, never believing that the relationship will end. But when it does the effect of divorce or separation can seriously heighten the impact of the debt problem," said Derek Oakley, spokesperson for the company.
He also had some advice on couples who are going their separate ways.
"Even after divorce, many couples still hold credit or store cards in joint names," said he added.
"After separation it's important to advise the credit company to terminate the joint card. Unless you do this you could be pursued for payments on debt that your ex-partner has run up."
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