Shared debt split after divorce?

tbourner

I have friends who have just got divorced, they have an overdraft with around £6000 on it that is now frozen and they have their own accounts. One party has agreed to pay £250 a month but won't start until the other person does - otherwise they might end up paying more than their share (or the full amount!!). The other person can't afford to pay that much, or any really until they're sorted into a better position and know their ins and outs.

Is there any way of officially splitting the debt so one party can pay off their half and be clear of the debt? Can this be done without having to get more credit? What if only one person can get credit it's the same problem with the remainder being owed by both people?

smartpicture

Both parties owe the whole amount, not just their half - the bank can choose who they come after (usually the one with most money). If they both stop paying, it will ruin the credit rating of both of them. It's a common situation, and there is no easy answer. You could try negotiating a smaller payment with the bank, in the hope that the other person will be in a position to join in before you've paid out too much, but if they won't pay, you either pay it all yourself or be dragged down with them. I'm surprised it wasn't sorted out as part of the divorce, to be honest.

tbourner

The divorce seems to have been a bit of a farce, neither of them are that money aware although they're both doing better now with advice from me and DW. We're going to speak to party #2 on Wednesday and try to get a SOA filled in and go through the paperwork, hopefully we'll get somewhere.