Divorce stats reveal sad cost of living truth

Shocking stats surrounding the number of separated couples still living together and DIY divorces skyrocketing due to the cost of living crisis have been revealed.

The number of couples opting for a DIY divorce and continuing to live together after separating has skyrocketed due to the cost of living and housing market crisis.

In the five years since 2018, Services Australia has seen a 47 per cent rise in the number of people on some sort of government benefit who are living “separated under one roof”.

Family lawyer Michael Tiyce, principal of Tiyce & Lawyers, told news.com.au that while this period takes in the Covid pandemic, when separated couples may not have been able to move as easily due to government restrictions, now it’s being driven by financial realities.

“With the cost of living crisis in full swing, there has been a real boom in post-separation cohabitation,” Mr Tiyce said.

“Many people may continue living together because of a lack of financial capacity, they can’t afford to each be renting or for one to be paying the mortgage and another to be renting.”

He said the “difficulty in finding suitable rental accommodation” in many parts of Australia was also a driving factor.

There's a correlation between interest rate rises and divorce inquiries. Picture: The Separation Guide.

The Separation Guide’s 2023 impact report found that while cost of living pressures may be keeping separated couples under the one roof, they were also putting additional stress on relationships, with a correlation between interest rate rises and divorce inquiries.

But the cost of living is also a factor preventing people who may want to from separating.

“Couples who have decided to separate are finding that setting up two separate homes is becoming increasingly difficult,” the report found.

With a straightforward divorce typically costing between $10,000 – $20,000 in legal advice, Mr Tiyce said increases in the cost of living were also driving an increasing number of Australians to opt for a DIY divorce rather than seeking legal advice.

There's been a rise in people living together after splitting up.

Statistics from The Separation Guide show that in 2023, 47 per cent of separating couples attempted to negotiate their own divorce, rather than paying for legal advice, with 33 per cent reaching a settlement without advice.

“This figure gives us cause for alarm, as our triaging Q&A finds only 7% of respondents are suitable for DIY agreement approach,” The Separation Guide report said.

Mr Tiyce said that by taking a DIY approach, many people may be walking away from a relationship with less than they deserve, getting “burned by ill-thought-out agreements and delayed process times”.

He added that problems needing legal intervention can arise if the separating parties disagree on what constitutes a fair settlement, need to transfer property without incurring stamp duty, need to undertake a super split or if there is a financial agreement (the Australian version of a pre-nup) involved.

Family lawyer Michael Tiyce said that problems needing legal intervention can arise when couples take matters into their own hands.

He said immigrants unaware of how Australian family law works and women who had fulfilled traditional stay-at-home roles during a relationship may be particularly at risk of being short-changed in a financial settlement.

In the case of couples where one party has worked in the home while the other has been in paid employment, Mr Tiyce said Australian law values those contributions to the relationship equally, “but without legal advice that sometimes isn’t clear to people”