What/whose income counts for DMP SOA etc

Moglet

I notice a lot of people trying to seperate out their finances with a partner when doing a SOA.

When doing these for your own benefit to try and manage your finances better I would imagine it's better to put the whole household income and expenditure down. But how should you tackle it if you houseshare for example?

Also, when completing these statements for creditors whose income should be taken in to account. Both parties? Seems a little unfair if the debt is only one persons. Would they put down a half share of the bills in that case? What if one person earns twice what the other does so household bills are split pro-rata according to income?

Just curious.

Moglet

Anybody know? One of OH creditors is insisting on one in order to carry on making the same payment that has been made for over 6 years and they're not getting one but if we did need to do one, I wouldn't know what to put. When his original I&E was done he had a mortgage, a wife and it was marital debt albeit in his name. Now it's his debt and nothing to do with me.

MRS_A_3

Hi moglet

In my experience I put my own income and an amount that my DH pays me a month to cover his share of the household bills. He had to write a letter to say he gives me x amount per month.

The CCCS were fine with this and put on my SOA they send to creditors that there are other adults which could contribute to the household.

If the debts are solely in your OH name then his creditors cannot make you tell them what you earn. If the debts were joint then that could be different

Moglet

Thanks MRS A for your reply.

So we could do it 2 ways. Either him putting down all the household bills and then a sum paid to him for my share or I pay all household bills and he puts down a sum paid to me.

What about ratios when one partner earns more than the other? Do creditors expect to see expenditure split 50/50 even when incomes aren't comparable? Does one partner have to suffer because the other is in debt? I've never been in this situation before, when myself and my ex partner were in debt although debts were in each of our names, we'd run them up together during the course of our relationship. Now, I'm debt free but am with someone who isn't.

Hannah_10

They don't have set expectations of how you will split your financial commitments, they ask for an SOA to see how in your particular situation you do end up making that split.

Moglet

Thanks Hannah_10. Wouldn't he need to declared my income and a ratio split for the bills for them to see that and then decide if they thought it was acceptable? There is no way they're getting details of what I earn, ever!

Hannah_10

Not really no, he could just put you down as contributing £xx to the household a month, which would be what you do actually contribute. Did that make sense?

So if you do all the food shopping, he pays the gas, electric and TV licence and you split the car insurance down the middle... Well if food is £200 and car insurance is £50 your contribution is £225 and that can be how you appear on the SOA if that is your choice, as simply a contribution to a set of household expenses written jointly. You with me? Write down everything as a joint figure, then work out how much of it you actually pay, then write down your input just as "partners contribution" where it would say "partners earnings". You don't need to break it down for them.