Brits Lose Nearly Half Their Savings After Separation, New Report Reveals 

With relationship breakdown affecting millions of families across the UK, Amicable has unveiled new research exploring what separation really costs in 2026 – not just in legal fees, but across savings, housing, parenting, careers and future financial planning – and how unnecessary, often solicitor-driven conflict can make the process longer, more expensive and more damaging. 

Based on a survey of 2,000 UK adults who have divorced, dissolved a civil partnership or separated in the last 10 years, the new Cost of Divorce Report ‘Splitting: The Bill’ reveals that while many couples manage to part ways constructively, nearly a third (32%) describe their split as involving significant conflict, dispute or being highly adversarial – with major consequences for their finances and everyday lives. 

Over the last decade, the average UK divorce or dissolution has taken 11.6 months to complete, rising to 15.4 months for those who describe their experience as unamicable. For divorcees and those dissolving a civil partnership, legal fees alone average £5,528 per person. Beyond those direct legal costs, the wider financial impact is significant too, with personal savings reduced by 46% on average, annual household income falling by £12,418 and 69% saying their career was impacted. 

For those who separated, rather than divorced or dissolved a civil partnership, the financial strain was also significant. The average legal cost of separation reached £7,773 per person, with savings falling by 33%, debt affecting 40% of people, household income dropping by £12,067 and two thirds saying their career was affected. 

The report also suggests the cost of separation is rising. Looking at divorces, dissolutions and separations together, individuals whose split took place in the last year reported average legal costs of £8,296 per person – more than £2,600 higher than those whose split happened five to ten years ago (£5,690). In some cases, the financial impact is far higher: one in 20 individuals say they spent £20,000 or more in legal fees alone, 11 times the cost of many amicable splits. 

The conflict premium 

At the same time, the UK appears to be rethinking how it separates. Ten years ago, more than half of couples (52%) used a solicitor or lawyer to manage their split. In the last 12 months that figure has fallen to just 28%, as more couples choose to handle the process themselves, use mediation, online divorce services or couples’ legal and negotiation services, like amicable. 

In the same period, there have been 7% more amicable splits, 10% less highly contested separations, the average savings loss has decreased by 10% and separations have shortened by 2.5 months on average. 

Legal fees are only part of the financial story 

Parting ways can be costly, complicated and unpredictable – and when couples take the solicitor-led approach where conflict can be billed by the minute, this inevitably multiplies.  

Legal bills are often the most visible cost of separation, but the research shows that the financial impact reaches far beyond the legal process itself.  Across all adults surveyed, the average legal and professional fees associated with divorce, dissolution or separation come to almost £6,500 per person over the past decade. 

Many people also face longer-term financial consequences. Almost four in ten (38%) say their split pushed them into debt, rising to 43% among parents of young children. The biggest financial pressures include day-to-day living costs, setting up a new home, legal or court fees, and the loss of household income. 

Savings also take a major hit. Personal savings decreased for half of adults by an average of 40%, while three quarters say they had to cut back on non-essential spending such as holidays, hobbies and eating out following their split. 

The research also highlights how often pensions are overlooked during separation. Only 12% of adults say they agreed on the division of a pension pot when they separated, while nearly a quarter (22%) were unaware pensions could be shared at all. 

The family home is one of the hardest parts to untangle 

For the two in five (42%) couples who own a property together, deciding what to do with the family home after a split can be emotionally and practically complicated.  
 

The most common arrangement is for one partner to remain in the home and buy the other out (33%), while a quarter opt to sell and split the proceeds (27%), or have one partner remain in the home with no formal buyout (26%). Whichever route couples take, having a structured negotiation process in place can make these decisions faster, cheaper and less onerous. 

On average, it takes 6.7 months to resolve housing arrangements after a split. Many people also face longer-term housing challenges, including having to downsize significantly (24%), struggling to save for a new deposit (17%), moving to a less desirable area (16%) or facing difficulty passing rental affordability checks (13%). 

Financial pressures can also force couples to continue living together even after separating. More than a quarter of adults (27%) say they remained living with their ex for financial reasons, staying under the same roof for an average of 7.3 months. For 14%, that situation lasted for more than a year. 

For parents, the impact can continue long after the paperwork is done 

Ensuring children are cared for and able to thrive is every parent’s priority, and those able to take an amicable approach to divorce or separation have the foundations to achieve this. However, children exposed to ongoing and unresolved conflict may experience longer-term consequences.  

More than four in ten parents believe their split has negatively impacted their child’s mental health, while a fifth say their child’s educational outcomes were affected. The report also points to wider evidence suggesting that conflict in the home – rather than separation itself – is more likely to drive the most damaging outcomes for children. 

The report also suggests that while many parents are able to put financial arrangements in place, reliability is far from guaranteed. Almost half say they have child maintenance payments or an informal arrangement in place, but only 57% of those receiving payments say they are always paid in full and on time.  

Separation can also shape people’s working lives – for better and for worse 

A lengthy, adversarial separation process can carry a measurable workplace cost that is regularly overlooked. Two thirds of adults say their split affected their career in the year that followed. 

Among the most common effects were increased working hours (18%), difficulties with concentration or productivity (16%) and missing out on promotions or career opportunities (5%). 

For some, however, separation also created new opportunities. One in ten (11%) say it gave them more energy to focus on their career or financial independence, 8% say they had more time to pursue career goals and one in 25 say it helped them start their own business. 

A new generation is taking a more forward-thinking approach to relationships 

Experiences of separation are also shaping how people think about future relationships. 

Legally binding financial agreements are becoming more common, particularly among younger adults. While just 6% of adults had one in place nine to ten years ago, almost one in five (19%) have had one in the last four years. That rises to 21% of Millennials and 30% of Gen Z. 

Younger generations are also more likely to say they would have a more forward-thinking approach to relationships in future,including through prenuptial agreements, cohabitation agreements or seeking legal advice before moving in with or marrying a partner. 

Nearly half of adults (46%) say they would avoid marrying again altogether in order to keep their finances separate. 

Kate Daly, Co-Founder of amicable, said: “Separation is often talked about in terms of legal fees alone, but it is conflict that can make the process longer, more expensive and more damaging. It can reshape where you live, how financially secure you feel, how you parent, how you work and how quickly you are able to move forward with your life. 

“This report is not about discouraging people from leaving relationships that are no longer right for them. It is about showing the very real financial and practical consequences of conflict, and why a more constructive, collaborative approach can help reduce stress, cost and long-term damage for everyone involved. 

“At amicable, we believe ending a relationship should not have to mean losing control of your future. The more couples can approach separation in a clearer and more supported way, the better the outcome is likely to be for them and for the families around them.” 

Molly Pile, Chartered Financial Adviser at Octopus Money, said: “Separation can create an immediate reset in someone’s financial life. Household income may fall, essential costs can rise, and plans that once felt manageable – from housing to saving – can suddenly look very different. 

“In moments like this, having clarity is crucial. The earlier people can understand their new financial reality and start making informed choices, the sooner they’ll establish stability in the months and years ahead.” 

The full report is available to read and download from the amicable website: https://amicable.io/splitting-the-bill?utm_source=pressrelease&utm_medium=pressrelease&utm_campaign=Splittingthebillreport. 

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