Why More UK Couples Are Too Broke to Divorce – A Cost of Living Crisis

In the face of an unrelenting cost of living crisis, a growing number of UK couples are finding themselves trapped in an unexpected limbo—not in their relationships, but in their housing situations. At Divorce-Online, we’ve observed a stark increase in couples who, despite ending their romantic partnerships, continue to cohabit simply because they cannot afford to live separately. This isn’t a matter of choice. It’s a matter of survival.

The Rise of the “Flatmate Divorce”

We’ve coined a term for this increasingly common arrangement: the flatmate divorce. It’s a situation where ex-partners, unable to afford the costs of physically separating, continue to live together under the same roof—often sharing bills, responsibilities, and even parenting duties—while leading emotionally disconnected lives.

We hear from clients who have endured this for months, even years. One parent shared:

“We separated amicably over a year ago, but the fixed-term mortgage ended and now neither of us can afford to refinance or rent solo. We’re doing our best to co-parent and stay civil, but it’s not sustainable.”

This is not an issue of indecision. These are people who have made up their minds. They want out. But their finances simply won’t let them move on.

The Financial Traps of Modern Divorce

Historically, divorce has always come with emotional and financial challenges. But today, it’s the basic cost of living—not luxury—that’s putting divorce out of reach for many.

The financial roadblocks include:

• Sky-high rents: Average monthly private rents in the UK now exceed £1,200, with London pushing £2,000. That’s before bills, council tax, and commuting costs.
   
• Rising mortgage rates: Fixed deals ending often lead to standard variable rates that are significantly higher, making remortgaging impossible for some.
   
• Legal fees: Even an uncontested divorce can cost thousands once you include solicitor fees, court orders, and financial settlements.
   
• Childcare and school costs: For couples with children, the cost of dividing homes can mean duplicating expenses—childcare, school supplies, clothing, and more.
   

All of this comes on top of frozen wages, spiralling utility bills, and inflation that continues to outpace income growth.

Emotional Fallout: Living in Limbo

The emotional toll of staying under the same roof with someone you’ve separated from is immense. People tell us about sleeping in separate rooms, barely speaking, tiptoeing around conflict to protect their children, and feeling emotionally burnt out.

For children, the situation is no better. Living with constant tension—even if it’s unspoken—affects their sense of security, development, and well-being. Co-parenting works best when there’s emotional distance and independence. In these homes, however, parents can’t establish new routines, boundaries, or healing processes because they’re still physically entangled.

This is a crisis that is impacting thousands—not just emotionally, but psychologically and socially.

Rethinking the System: It’s Time for Change

One of the biggest myths about divorce is that it’s mostly an emotional decision. In truth, it’s deeply practical. And when the system only supports those who can afford to act, we’re failing the rest.

The UK needs a serious rethink of how we support separating families. That includes:

• Affordable fixed-fee legal services for divorces, financial consent orders, and co-parenting arrangements.
   
• Public housing reform that accounts for the real need of separated parents and newly single adults.
   
• Increased public funding or grants for lower-income individuals to afford legal separation.
   
• Awareness campaigns to educate people on available low-cost divorce options, like online services or mediation.
   

Right now, many separating couples are forced to choose between their mental health and their financial stability. That’s not a decision anyone should have to make.

What Couples Can Do Now

If you’re one of the many couples in this situation, you’re not alone—and there are ways to begin moving forward.

Here are a few practical steps to take:

1. Explore Online Divorce Services

Platforms like Divorce-Online can reduce the cost of legal separation by hundreds—sometimes thousands—of pounds. Whether it’s a simple divorce or a more complex financial settlement, fixed-fee services make the process predictable and affordable.

2. Apply for a Financial Consent Order

This step is often overlooked, but critical. A financial consent order ensures a clean break and prevents future financial claims. It’s a legal safeguard that more couples should be aware of—especially when money is tight.

3. Use Mediation for Parenting Plans

Instead of going to court, consider family mediation. It’s faster, cheaper, and often more constructive. Many mediation services are available at reduced rates, and some are free for those on low incomes.

4. Investigate Housing Assistance

Local councils and housing charities may offer help for those in difficult domestic arrangements. If children are involved, some families may qualify for priority housing.

5. Set Clear House Rules

While cohabiting, even temporarily, it’s important to set emotional and logistical boundaries. This may include defined parenting schedules, bill-splitting agreements, and limits on social interactions to create breathing space.

Divorce-Online: A Helping Hand in Difficult Times

At Divorce-Online, we’ve supported over 200,000 clients since 1999. Our mission is to make legal separation accessible to everyone—regardless of income, postcode, or personal circumstances.

We offer:

• Online divorce applications from £199
   
• Fixed-fee financial consent orders to secure your future
   
• Support for co-parenting plans and amicable arrangements
   
• Step-by-step legal guidance without hidden fees
   

Divorce doesn’t have to cost a fortune. With the right support, you can take back control of your life—one step at a time.

Conclusion: Divorce Shouldn’t Be a Luxury

The rising number of couples stuck in broken relationships due to finances is more than just a trend—it’s a national concern. Everyone deserves the right to move on from a relationship that no longer works. But for too many people in today’s economic climate, that right is being held hostage by the cost of living.

It’s time to talk openly about the reality of the “flatmate divorce.” It’s time to provide real, accessible solutions for those who need them. And it’s time to ensure that divorce—like marriage—is a choice, not a privilege.

If you’re ready to move forward, Divorce-Online is here to help—affordably, fairly, and with dignity.

Need Expert Divorce Advice?

Let our experienced divorce solicitors guide you through every step — from separation to settlement.
Clear, compassionate legal support
Fixed-fee options available
Fast response times

Book your free initial consultation now — start here and get peace of mind today