Cost of Living Crisis Driving Relationship Strain and Separation in Australia
- Justeen Dormer
- Aug 6
- 2 min read
Family Law
As Australians face rising interest rates, rental shortages and record-high grocery bills, the nation's cost of living crisis is leaving its mark not only on bank accounts but on relationships.
A survey by Suicide Prevention Australia revealed that 56% of families with children under 18 are experiencing high levels of financial distress. Of those, 46% cited cost-of-living pressures and personal debt as their primary concern.
The combination of inflation, job insecurity, and rising living costs is adding to the stress for couples already navigating the everyday pressures of family life. Financial hardship not only contributes to a breakdown in trust, intimacy, and communication, but it also makes the process of separation itself more complicated and costly.
Breaking up is often thought of as an emotional process, but for many, it's also a financial impossibility. Once a couple parts ways, maintaining two households is usually not feasible on the same income that previously supported just one.
In these situations, some couples resort to what's known as "separation under one roof", an arrangement where both parties remain in the same home post-separation, unable to afford alternative housing.
Establishing physical, emotional, and financial boundaries is crucial to affirm the separation and lay the groundwork for future independence.
This means sleeping in separate rooms, preparing meals independently, adjusting childcare responsibilities, and communicating the nature of the separation to family and the wider community. Joint finances should also be reviewed, with separate bank accounts and a fair division of household bills established.
For individuals in relationships marked by family violence, remaining under the same roof is neither safe nor appropriate. In these cases, immediate support should be sought through social services or the legal system. Courts can issue orders to secure safe accommodation, and family violence support networks can assist in developing a safe exit plan for victims and children.
Relationship breakdowns are never easy, and when driven by financial stress, the path forward can feel overwhelming. But there are options available. Legal advice and family support services can play a crucial role in helping couples navigate the complexities of post-separation life, particularly when cost-of-living pressures make difficult decisions even more challenging.
During times like these, legal services must respond with flexibility and understanding. That's why Dormer Stanhope offers Deferred Fee Agreements for clients who need immediate legal assistance but may not yet have access to liquid funds.
Dormer Stanhope is here to support individuals through the emotional and legal challenges of separation and divorce. Whether you're still living under the same roof or need help finalising financial arrangements, we can help you move forward with clarity and confidence.
Australia’s cost of living crisis is increasing relationship strain, making separation more difficult both emotionally and financially. If you're navigating a breakup under financial stress, talk to Dormer Stanhope about your legal options and support.
