By Neil Hobden

The knock-on effects of the recession are myriad and the divorce process is no exception. Already we have heard how some couples are opting to stay together to preserve their dwindling assets, while others are being forced to live in the marital home after dissolving their marriages because they can’t sell the property.

It is now becoming clear that fewer divorces are being settled out of court, meaning that more cases are proceeding to final hearings. This time last year, about three-quarters of cases were resolved before they reached the final court hearing – now the figure is less than half.

In circumstances where there is a reduced pool of assets available as a result of the credit crunch, couples are fighting harder over their cash, property and other financial interests. There is also greater difficulty, now, in putting a value on homes, business, share options and pensions because of the instability of the economic situation. This uncertainty is, I suspect, making people more inclined to leave it to the courts to make a decision on the division of assets.

Before the credit crunch, separating partners – especially high earners and successful entrepreneurs – may have had a more relaxed attitude, taking the view that they would be able to bounce back financially fairly easily from the loss of a large slice of their bank balance. As the recession bites deeper, people are less sure of being able to make up the shortfall and, as a result, are being more careful.

Going to final resolution in divorce cases runs contrary to the legal framework set up to make marital separation as stress-free as possible. Yet it is understandable that more divorcing couples are opting to battle on until the bitter end in the hope of being awarded a larger piece of the cake.

It is important to hear in mind, however, that the longer the divorce process continues, the more expensive it will be in terms of legal fees. Of course, a bigger final settlement will off-set this, but it should be kept in mind that settling out of court is often less traumatic, less costly and can pave the way for more cordial relationships in the future.

·         Neil Hobden is a partner with Benussi & Co