Analysis shows more couples are separating but remaining in the same house due to financial woes

A shocking number of separated couples consider staying under the same roof as the number of DIY divorces skyrocket due to the cost of living crisis, it has been revealed.

New data shows more couples are separating but remaining living in the same house due to the financial crisis. Picture: iStock.

The cost of living crisis is driving couples apart, with a surge in separation rates across the nation – but financial strain is also keeping many of those uncoupling under the same roof, new analysis shows.

Data collated by national divorce technology platform The Separation Guide reveals so far this year there has been a 22 per cent increase in people searching for information about relationship breakdown, compared to 2023.

In terms of search queries, the biggest spike has been in relation to “separated but living together” which has blown out by 773 per cent.

While people searching for information on “how to separate from a spouse while living together” has risen by 88 per cent.

“People continue to be stuck in a holding pattern as cost of living pressures force more separated couples to remain living under the one roof,” site CEO Angela Harbinson said

“A lot of people think, ‘we need to sell our home before we can afford to go through the process of formalising our settlement arrangement’.”

The Separation Guide CEO Angela Harbinson.

In a state-by-state breakdown, South Australia experienced among the highest increase in separation inquiries (up by 23.5 per cent), second only to the ACT.

Ms Harbinson said a survey of almost 600 users of the site showed financial distress was driving more to opt for “do-it-yourself”-style divorce and separation.

However, it also revealed more than two thirds of couples who avoided legal advice later regretted it.

“Our research shows 42 per cent of women accept unfair deals,” she said.

“I think people often hear of the horror side of divorce … but the reality is, you’ve got to get the right support from the right type of legal professional.”

Leading SA collaborative lawyer Bev Clark, who has worked in family law for more than three decades, said she’s seen some “frightening” self-negotiated agreements with couples often not properly considering superannuation or the value of a family business.

“Family law is complex … I feel that at least a one hour first appointment with a settlement-focused lawyer is money well spent early on; it does not mean that they have to negotiate any differently but at least the deal they strike will be done with their eyes open.”

Clark Panagakos Family Law‘s Bev Clark. Picture: Morgan Sette

Also a partner at Clark Panagakos is Erica Panagakos. Picture: Supplied

Her partner at Clark Panagakos Family Law, Erica Panagakos, added it was vital agreements were properly documented, to ensure that were legally binding.

“There can be all sorts of ramifications down the track for people who are under the misconception that they have reached a binding agreement when their agreement is not enforceable,” she said.

“Aside from ex spouses making unexpected claims for property settlement at some future date, there can also be issues with ex spouses contesting estates if they allege they have never had the benefit of a property settlement at the time they separated from the deceased.”

According to newly released ABS data, there were 48700 divorces in 2023, slightly down from the 49,241 in 2022. In SA, there was a slight increase to 3133 in 2023, up from 3064 a year earlier.