Only 1% prepared for love turning sour
Research from Alliance & Leicester Personal loans has revealed that only 1% of those who make joint purchases have a contract in place in the event of a split.
A further 3% have a verbal agreement over who gets what, but the figures reveal a worrying shortfall considering nine out of 10 surveyed made major purchases with their partner.
The cost of starting a new life after a break-up has previously been estimated by A&L as £13,500, so the end of a relationship can be hard on the finances as well as the heart.
Richard Al-Dabbagh, senior personal Loans Manager at Alliance & Leicester, said: “It is the tragic truth that the cost of splitting up can often last longer than the associated heartache. And while it is hardly romantic to discuss what will happen to jointly bought items when the relationship ends, it could save a lot of trouble, heartache and cost if that uncomfortable conversation takes place.
“This research shows the huge amount of uncertainly that couples have as to who gets what. It seems that too many people are getting swept away in the moment and buying things jointly with no thought about what happens in the future.
“The financial implications of starting again after a split can be major, and if funds are needed, a painless way of getting those could be to get a personal loan. To make their budget go further people should look around for a good deal, and not just rely on their big-name high street bank to give them a good deal – it could end up costing them £700 more in interest payments.”