City Workers Divorce Fears due to Credit Crunch
July 11, 2008 2:37 pm Other Divorce News
Spouses of high earning City workers will be looking to divorce now before the credit crunch has full impact on the partners salaries according to a recent study by a law firm.
Out of a 100 traders, stock brokers and hedge-fund managers 79 percent believe due to the economic crisis marriages are more likely to break down, A fifth of the traders asked said they knew at least one person served with divorce papers since the start of the credit crunch. One in 10 are also worried that their spouse is already taking legal advice on divorce.
With the cost of oil increasing, house prices falling and banks lending less, The Bank of England Governor Mervyn King said June 26 the inflation rate may jump to 4 percent, double the target, and that the economy may contract.
Marriage is a contract and now more than ever there is a real need for pre-nuptial agreements to be entrenched in main stream law, with only 4 percent of people in the survey saying that had one in place, pre-nuptial agreements are not binding in British Law.
60 percent of the city workers surveyed said they asked their spouse to cut back spending, 19 percent of which said their partners refused to cut back.
Figures from the U.K. Office for National Statistics show the divorce rate in England and Wales fell 7 percent in 2006 to 132,562, the lowest rate since 1984.
