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This is a useful resource for those who experience the effects of divorce – the divorcees, older children, family and so on.
Debt is caused when individuals or couples find repaying debts difficult. This is often caused by a change in circumstances such as loss of income or having unexpected essential expenses. For many people a relatively small rise in interest rates can make it impossible to meet their entire mortgage or rent repayments let alone any other unsecured debt repayments.
Money problems are quite frequently the root cause of the breakdown of relationships whether you are married or living together. If the breakdown of the relationship is for other reasons there is still the worrying factor of sorting out debts in addition to having to pay for household bills by yourself.
What you can do
The first thing to do is to draw up a budget. This will comprise of a list all your income, your outgoings which include debt repayments, your major possessions and all your debts. Then you will need to calculate your disposable income- What is the shortfall in your income? Is there anything you could sell to pay off a debt or part of a debt and so reducing your repayments? Are you able to cut costs anywhere?
If you are unable to find a realistic solution to your debt repayments, Debt Plan Direct provide free help to advise on all aspects of debt. We can help for any debt amounts and provide a free confidential service.
Contact us on 0845 055 8152 for information and help.
If you are struggling to pay your mortgage or rent, it is vital you contact your lender or landlord as soon as possible to explain why and what you are trying to do about it (even if, at this stage, it's only getting advice). This will help to stop any potential legal proceedings against you where you could lose your home.
Are you responsible for your partner's debts?
No. Just because you are married or living together does not mean you are responsible for your partner's debts. You will, however, be responsible for any joint debts. Example of joint debts can be:
- Joint mortgages
- Joint bank accounts
- Joint personal loans
- Joint credit or store cards
- Joint Hire Purchase agreements
These sorts of debt are likely to be in both of your names and you will both have signed some form of legal agreement.
Many credit and store cards offer a 'second card' - this does not make the account a 'joint' one. The main card holder is the only one legally responsible for the debt - even if his/her partner is the only person ever using the account.
If you are going through a divorce, it is possible that most or even all of your debts are regarded as 'family debts'. Please contact one of our qualified advisers for further debt help on divorce or separation on how the courts make their decisions. Our expert advisers are always happy to help.
How to stop your partner creating more debt
Unfortunately in some instances a partner may spend excessively as a sort of ‘revenge’ for the relationship breakdown or just to feel better.
It is possible to 'freeze' any joint bank accounts to stop either of you from using the accounts. A joint credit card can also be cancelled but you will still be responsible for the repayments for any outstanding amount.
After any separation it is important to ensure that the family has enough money to live on and to pay for any essential expenses. By drawing up a budget you will be able to work out you can then both decide who is responsible for which particular debts for how much of it. In may also be helpful to open two separate bank accounts especially if you are splitting up- this will happen sooner or later anyway.
If you are not the main earner in the family and your partner is creating more debt, squandering family assets, or is refusing to support the family financially, you might need to make an application to the court.
Our debt advisers can give you further advice on all aspects of relationship breakdowns or divorce and how best to tackle any debt issues
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