Divorcees in the most debt

Divorcees have a higher debt burden than anyone else, new figures show.

According to calculations by Alliance & Leicester, the cost of a marriage breaking up is far more than emotional, with divorcees having the highest debt relative to their income of anyone.

On top of this high debt burden, the UK's divorced community rely more on credit cards and personal loans to get by than any other group.

"Splitting up clearly gives rise to a lot of costs, including setting up a new home," said Chris Rhodes, managing director of Alliance & Leicester retail banking.

"This is reflected in the fact that the recently separated have the highest overall level of debt at £6,262.

"However, over the years, divorced people's finances do not seem to improve - showing how long-lived the effects of relationship breakdown can be."

Whichever way you cut it, the UK's divorced population is struggling.

The average divorced person owes £4,984 - not counting any mortgage - over a quarter of their incomes.

Divorced Britons also pay more of their incomes servicing their debt than any other group, have lower incomes and tend to be older - 54 on average - and as such are nearer retirement.

Divorcees also have the largest personal loans of any group, £2,789 per person, and divorcees' average credit card balances are more than 50 per cent higher than that of a married person (£1,550 against £942).

Additionally, 44 per cent of divorcees have no savings, compared with 27 per cent of married couples and a national average of 32 per cent, and are 21 per cent less likely to own their own home.

"Divorce is financially as well as emotionally costly," Mr Rhodes said.

"Our research shows how severe these financial effects are.

"The majority of divorcees in our sample are over 50. They have fewer assets in terms of savings or owning their own homes.

"Being in poorer financial shape at this age than their married counterparts will have clear knock-on effects into retirement."