The key point about divorce and debt 

Separating from a partner can be a very stressful and confusing time. There will be some key things you’ll need to sort out when you separate. Whether you need legal help when arranging your divorce or separation will depend on how complex your situation is. You need to consider things such as: 

• essential bills that need to be paid; 
• debts that you have; 
• assets, such as a property; and  
• how any children will be supported.  

Getting divorced does not change who is responsible for credit debts such as credit cards, loans or overdrafts. If the debt is only in one person’s name, that person will continue to be liable.  

If any debts are in joint names, then you will both continue to be ‘jointly and severally liable’ for the whole amount. This means you are both liable for the debt and the creditor can recover it from one or both of you. 

Separation vs divorce: What is different? 

If you are married and looking to separate, you can apply for divorce. This is when you apply to court to legally end your marriage. A divorce only ends the marriage; it won’t end the financial connection between you and your ex-partner. You can apply for a divorce online or in writing, the gov.uk website explains the process in more detail.  

If you don’t want to apply for a divorce you can instead apply for a legal separation. This will allow you to divide your finances without ending the marriage officially. You will need to apply for a legal separation in writing. The gov.uk website explains the process in more detail. 

If you aren’t married, separation will generally be more straightforward as there are fewer formal legal processes to go through.  

You can find out more about the different types of separation on the MoneyHelper website. 

However you decide to separate, you will need to discuss how you will split financially from your ex-partner.  

How to split financially from your ex-partner

Informal arrangement 

If you have limited financial ties and/or no children, you may be able to arrange splitting your finances informally. You can do this yourselves or with the help of a family lawyer. Resolution can find a family lawyer that can help.

To make your agreement legally binding you need to draft a consent order and ask a court to approve it. If you don’t, the court won’t be able to get involved if there are any issues. You can find out more about consent orders on the gov.uk website.

Mediation 

If you are unable to agree how to split your finances, you could consider mediation to help you. Mediation is a way of sorting any differences you and your ex-partner may have about issues such as money, property or children. Mediation isn’t free; however, it will usually be much cheaper than going to the family court. 

The Family Mediation Council has more information about mediation and will help you find a local mediator.  

To make your agreement legally binding you need to draft a consent order and ask a court to approve it. If you don’t, the court won’t be able to get involved if there are any issues. You can find out more about consent orders on the gov.uk website.

Family Court

You are expected to try and come to your own agreement on how to deal with debts and assets when you separate if you can. However, it is not always possible to do this. Your case may be complex or one of the parties may not agree to the proposals. In these cases, you may need to go through the family court. The family court aims to help families resolve disputes relating to family matters quickly and with the minimum disruption to those involved.  

You can find out more about the family court on the Courts and Tribunals Judiciary website.  If you are going to the family court, you will need to seek legal advice. Resolution can help you find a family lawyer. 

Financial orders

If you have an informal arrangement or mediation agreed through a consent order; or you go through a family court to help, you will have a financial order. The financial order could be for one person to pay the other an amount of money, or for a property to dealt with in a certain way. The financial order will be based on a variety of factors such as the needs of any children, and an individuals’ income, property and financial needs. You can find out more about financial orders on the advicenow website.

A financial order does not change who is liable for a debt. For credit debts, only the person who has signed the original agreement can be liable. See the What debts are you responsible for after separation or divorce section for more information. 

Child maintenance

The financial order from a family court will be separate to child maintenance that one parent may pay the parent who is responsible for looking after any children. Child maintenance payments are arranged through the Child Maintenance Service. You can find out more about the Child Maintenance Service on the gov.uk website. 

What debts are you responsible for after separation or divorce?

Separating from your partner is likely to mean that your household income will drop.  Check whether you may be eligible for any benefits now that your circumstances have changed.  You can do a benefits check on the Turn2us website.  

As discussed in the section above, you will need to arrange with your ex-partner who will pay any debts and essential outgoings when you separate or divorce.  

Make a list of any essential bills or debts that need to be paid and who is liable for them. Priority bills or debts will be things like mortgage, rent, energy and council tax. This is because you could lose an essential item if they aren’t paid. 

Non-priority debts are usually credit debts such as loans or credit cards. Whilst you should still pay these if you can afford them, not paying them will not mean that you will lose essential goods or services. However, not paying them will affect the credit file of the liable person.  That person could also have a county court judgment made against them if they do fall behind on payments. See the How divorce and separation can affect your credit file section for more information.  

Mortgage and secured loans 

If the mortgage or secured loan is in someone’s sole name, this will also continue to be the sole liability of that person. This will be the case even if the person liable has left the property.   

If your name is not on the mortgage but you intend to stay in the property, you’ll still need to make sure the mortgage is paid each month or there is a risk that the house will be repossessed.  

If the mortgage is in joint names, you will both be liable for the mortgage payments. To no longer be liable, you would need to remove your name from the mortgage. However, it is unlikely that the mortgage lender will remove someone’s name from a mortgage unless they are happy the other person can afford the repayments.  

If the loss of your ex-partner’s income means that you can no longer afford the mortgage, you will need to discuss whether your ex-partner will help contribute to the mortgage payment. Whether your ex-partner would be expected to help you pay the mortgage will depend on your exact situation such as whether there are children in the household.  

If you can’t arrange payments informally then you may need to seek mediation or go to the family court, see the How to split financially from your ex-partner section for more information.  

If you fall behind on your mortgage payments, our Mortgage arrears guide has lots of useful information that can help you.  

Council Tax 

If you have been living in a property with your ex-partner, you will be jointly and severally liable for any council tax debt built up during this time. This will be the case even if only one person’s name was on the council tax bill.  

Tell the council if you are now the only adult in the property as you will get a 25% reduction on your future bill. Once the council have been told someone has left the property, the liability of the person who has left the property will end.  

Any arrears you have on a council tax bill will be a priority. The Local Authority can go to court to obtain a liability order and then use bailiffs to recover the debt. If you have council tax arrears, call us for advice.  

Our Council tax guide has more information that can help you.  

Gas and electric

If you have been living in a property with your ex-partner, you will both be liable for any energy used during this time. This will be the case even if only one person’s name is on the energy bill. 

If someone leaves the property; inform the energy provider, the person who has left would still be jointly and severally liable for any money owed but would not be liable for any future bills.  

Any arrears you have with an energy supplier will be a priority because your energy supplier can disconnect your energy supply if you don’t arrange to repay the debt. If you have energy arrears, call us for advice.  

Our Gas and electric arrears guide has information that can help you.  

If your ex-partner stops paying a joint debt 

If your ex-partner stops paying a priority debt or essential bill that they are jointly liable for, call one of our advisers. They’ll be able to talk you through the next steps.  

If your ex-partner stops paying a joint credit debt such as an overdraft or loan, you will be liable for the repayments in the same way as your ex-partner. The creditor will be able to recover the full balance from one or both you.  

The creditor will expect you to make the monthly payment if you can afford to. You need to make sure you can cover any essential bills first. You can use My Money Steps to help you work out what you can afford to pay. 

If you are unable to afford the monthly payment, you will need to look for a possible debt solution. Call us, one of our expert advisers can go through the solutions that will be best for you.  

If you have a credit card, this won’t be in joint names. Only one person will be liable for the credit card debt. There may be a additional card holder who is able to use the credit card. However, they won’t be liable for the debt.

You can write to the creditors asking them to hold any accounts whilst you get advice. Use our Hold action sample letter. 

Our Ways to clear your debt guide has more information on debt solutions that may be suitable depending on your exact situation.  

How divorce and separation can affect your credit file 

If you have made a credit application in joint names or have had a bank account or financial product such as a loan or mortgage in joint names, you will be financially connected to that person. This will continue even when you are divorced or separated. Being financially connected means that a lender will be able to see information about that person on your credit file. 

You can apply for a notice of dissociation from your ex-partner when you have no longer have a financial link with them. Our Credit reference agencies guide covers a notice of dissociation in more detail and has lots of other useful information that will help. 

If you still have a joint debt, there will be no way to remove the financial link until the account is closed, repaid in full or your ex-partner’s name has been removed from the account.  

For a loan, this is only possible once the account has been repaid in full. For a bank account, the bank may agree to remove the other person’s name from the account. This is only likely if there isn’t an overdraft that needs to be paid back.  

If you have a credit card, this won’t be in joint names. Only one person will be liable for the credit card debt. There may be an additional card holder who is able to use the credit card. However, they can’t be held liable for the debt. Credit cards do not form a financial link with someone, even if they are an additional cardholder.

If you are unable to pay any credit debts that you are liable for (whether jointly or in your sole name), the missed payments will be recorded on your credit file.  

If your ex-partner falls behind on repayments to credit debts that only they are liable for, these missed payments will not show on your credit file. However, your ex-partner’s details will appear if you still have a financial link.  

If you’re ex-partner has agreed to repay a joint debt, either informally or through a court order, it’s important to know that you would still be liable for the debt, and the creditor can ask you for repayments as well. If a payment is missed this will be recorded on your credit file as well as your ex-partner’s credit file.  

Your credit report will also have a linked address which will list previous properties you have lived at or been financially connected to. 

Steps to take  

• Check your credit file so you know what you owe. 

• Ensure that all accounts that you are liable for are maintained if possible.  

• Remove your ex-partner from any joint accounts or close any joint accounts you are no longer using. 

• Apply for a notice of dissociation if you no longer have any financial links to your ex-partner. 

What to do next: A simple checklist 

• List all the debts that you have, and whether they are in sole names or joint names.  

• Separate banking and bills where you can. 

• Discuss with your ex-partner how your finances will be split. 

• Decide whether you need mediation or a family court to help. 

• Use My Money Steps to work out a budget based on your new situation. 

• Prioritise essentials, household bills and priority debts. 

• Let your creditors know as soon as possible if you are unable to maintain payments.  

• Speak to one of our advisers to discuss your possible debt solutions.  

Get free, confidential help from National Debtline 

Managing your finances when you are separating from a partner can be very stressful. National Debtline advisers are here to help you.  

• Visit our website 

• Use our webchat service 

• Get help completing a budget through My Money Steps  

• Call us on 0800 808 4000 

FAQs

Does a husband or wife have to pay their spouse’s debt? 

For credit debts, such as credit cards, loans and overdrafts you are only liable to pay debts that are in your name or in joint names with your husband or wife. 

If a debt is in your husband or wife’s sole name only, then you aren’t liable to pay it.  

This may be different for some household bills such as council tax or energy debts. If you have been living in the property during the time the debt was built up, you can be held liable even if the debt is just in your husband’s name. See the What debts are you responsible for after separation or divorce section for more information.   

What is marital debt and how is it treated?  

Marital debts are debts which have been built up whilst you and your ex-partner were married. This could be credit debt such as overdrafts, credit cards or loans. Or it could be arrears on household bills such as rent, energy or council tax.  

How debt is divided after separation or divorce will depend on the type of debt. For credit debts, such as credit cards, loans and overdrafts you are only liable to pay debts that are in your name or in joint names with your ex-partner. You aren’t liable to pay credit debts that are just in your ex-partner’s name.  

For some household bills, such as council tax or energy debt, if you have been living in the property during the during the time the debt was built up, you can be held liable even if the debt is just in your ex husband or wife’s name.  

See the What debts are you responsible for after separation or divorce section for more information.   

What if I marry someone with debt? 

You won’t become liable for someone’s debt by marrying them. You would only be liable for any debts that are in your sole name or joint names.  

If you begin to have joint accounts with the person, a financial link to that person will show on your credit file. Again, this won’t make you liable for the persons debt, it just informs the creditor that you are financially linked to this person.  

If the person you marry starts to fall behind on payments to debts that are not in your name, whilst you can’t be held liable for them, it may lead to collection agencies and court action being taken against them.  

If the person is struggling with their debts, get them to call us, one of our expert advisers can look at potential debt solutions for them.