Am i liable for my Wife's Debt

rhodod

Hi all,

Sorry if this is the wrong section, basically my father and step mother have split up and will be heading for a divorce. My father currently lives with me, and my step mother lives with both their children in their house.

The house is both my step mother and my father's, 200k profit to be made on the property when it is sold.

Now, my father has no credit cards in his names or any outstanding debt except for a mortgage, my step mother however has alot of credit cards in her name and also has a business which is failing badly and has almost 80k debt to be paid, mainly rent.

3 years ago, my step mother asked my father to remorgage their home for 20k, which he did and it went straight into her business


The business was up and running before they got together or married and only in the last 3 years has it been going under.

Now my step mother has told my father her solicitor told her he is liable to pay half of her business debt??

Is this correct? My father doesn't have his name on anything to do with her business or her credit cards, all her debt is hers and her business partner

Many thanks

nuttyp

Hi, as far as im aware, your father is only liable for something that is in either his name or joint names. She will be liable for her own debts. If the house is sodl then if she has paid into the house, then she would be entitled to half the profit, but this would be needed to clear her debts first. Are the children your dads, or from a previous relationship? This would also possibly affect his share of the profits.

As long as he hasnt been duped into signing something, then its up to her to sort out her own financial mess. If you dad can, get a credit report asap, go to experian or equifax and get the free 1 month trial - remember to cancel before the first month is up - and find out what is on his credit file. This should give you some idea if anything has happened.

good luck

Tupperware_Queen

basically if the debt was taken out jointly, both parties are liable. If one party is declared BR, the debt, in full, falls to the other person. They may find that they have little choice but to pursue BR themselves.

Its sad but true - when we are in love we sign our lives away....when the love is gone, the debt remains

Tupperware_Queen

but the OP says step mum asked dad to remortgage - which implies to me that it was joint - or am I reading too much into it?

Penelope_Penguin

rhodod wrote: »

Now my step mother has told my father her solicitor told her he is liable to pay half of her business debt??

Has he signed as a guarantor on the business debts, or are they secured against the home?

He could contact Business Debtline and ask their advice.

fermi

rhodod wrote: »

Is this correct? My father doesn't have his name on anything to do with her business or her credit cards, all her debt is hers and her business partner

No. That is rubbish based on the info you have given.

Obviously, once the house sale shakes down and the £200K is shared appropriately, then she would (or should) be paying her debts out of her share of that.

I presume here that there are no charging orders/further charges on the property?

rhodod

Hi,

thanks for all the replies.

The 2 children are my fathers, he hasn't signed anything to do with her business at all, it has been herself and her business partner. He remorgaged the house for the 20k and she put it into her business which he accepts he will need to pay off the 20k or at least half of it.

The property should make around 200k profit and it will be split equally, but according to my step mother's solicitor my father is liable to pay of half my step mothers debt.

@ Fermi

There are no charging orders or any other charges on the property.

@ Penelope Penguin

He hasnt signed anything to do with her business.

@ Tupperware_Queen

So according to your post, if my step mother files for bankrupcy my father will have to pay off her debts? surely that cannot be.

@ nuttyp

He was in his bank last week and they did a credit report and all that shows are his mortgage and the 2 bank account he owns. He asked the bank if his name was on any of his wife's business/credit card or loans and the bank said no.

Thanks

fermi

Well, that leaves 2 possibilities.

a) The solicitor massively incompetent.

b) She is misrepresenting or misunderstood what the solicitor actually told her.

Either way, he is not liable for her debts/business.

As said, she will have to pay her debts out of her fair share of what she gets from the property

rhodod

fermi wrote: »

Well, that leaves 2 possibilities.

a) The solicitor massively incompetent.

b) She is misrepresenting or misunderstood what the solicitor actually told her.

Either way, he is not liable for her debts/business.

As said, she will have to pay her debts out of her fair share of what she gets from the property

Thanks Fermi for your quick reply.

My father will be relieved.

silvercar

The 2 children are my fathers, he hasn't signed anything to do with her business at all, it has been herself and her business partner. He remorgaged the house for the 20k and she put it into her business which he accepts he will need to pay off the 20k or at least half of it.

The 20k will come out of the proceeds of the sale, before he sees his share of the equity.

Flyboy152

Are you absolutely sure that there is no partnership agreement between them for the business. I know you have confirmed that here isn't, but it won't do any harm to double check.