Divorce is major factor in bankruptcy

Financial advice firm Debt Free Direct’s study found that 28 per cent of all bankruptcies had the former partner’s large debts as the chief reason for splitting.

“Typically, people in a relationship will take on debts in joint names, never believing that the relationship will end. But when it does the effect of divorce or separation can seriously heighten the impact of the debt problem,” said company spokesman Derek Oakley.

While UK divorce rates are increasing, the survey found that women were more likely to become bankrupt, with 14 per cent more ex-wives than husbands doing so.

However, women were also less likely to turn to individual voluntary arrangement (IVA) even though it can put off the effects of bankruptcy without many of the problems.

Mr Oakley reminded those unfortunate to go through divorce to terminate joint credit cards or else they could still become liable for the other partner’s debt.