Debt - splitting it when splitting up

Locoblade

Hi All

Asking this on behalf of some friends who have recently separated after being married for a few years. From what I understand, the wife was declared bankrupt not long before they met, so although the house they've bought is in joint names (albeit verging on being in neg equity), most of their (fairly considerable) remaining debts have been taken out in one partner's sole name because of the bankruptcy against the other.

Ive done a bit of a search on here but couldnt find an answer, so was just wondering, if and when they divorce, how those debts are dealt with, are they still solely the responsibility of the party who's name is on the loan, or can they legally be considered in the divorce proceedings and split between them?

thanks

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ANY_CHANCE

I would be interested in this too a i am currently going through a similar situation,

I have had advice aying that as we were were together even though OH took out loans and CC without my knowledge i could still be liable for his debts.

Locoblade

In our friend's cases, its the other way round really, in that they took out the debt in his name because she wasn't credit worthy, using the money to pay for things they jointly benefitted from (cars, holidays etc), and although she now earns possibly more than he does and was helping repay the debts prior to the separation, it would appear now that she assumes she can walk away from the debt as its all in his name.

Hope you get it sorted

Locoblade

Crikey, posts get buried quick in this forum don't they

anyone?

peb

OK; as I see it there are two seperate points.

From the view of the creditors the debts are in one name only and they can only persue that person.

When it comes to divorce proceeding the use of the money (ie joint holidays etc) will be taken into account and the other party theretically would have liability. If the other party had cash or assets then they may be put into hte pot. The problem is if the other party is bankrupt it will not be possible to transfer loans etc as the banks will not be interested in taking him/her on.

I don't do matrimonial/litigation work so you do need to take this with a pinch of salt.

You do need to urge your friend to get legal advice asap.

get_me_out

When me and my ex separated, I was told that the debts in his name alone would fall to him. Any in my name fell to me, sadly some of the household debts where in my name alone. Which although I was not working did fall to me.

As not much money in the house if sold I would say the person named on debt is liable. Unless things have changed I am going back about 7 yrs.

Locoblade

Cheers guys, looks like there are avenues for them to pursue but no definitive answers.