Am i liable for my Wife's Debt

fermi

rhodod wrote: »

Thanks Fermi for your quick reply.

My father will be relieved.

If I was him I would still take Penelope Penguin's advice and get him phone Business Debtline or National Debtline.

It's free to phone.

http://www.nationaldebtline.co.uk/

http://www.bdl.org.uk/

We can give an opinion here, but it's no substitute for one-on-one advice from a proper debt advisor.

If he talks it though with one of those, and they still say "No. Not your problem", then that will give him much more confidence and peace of mind than and 3rd party opinion on an internet forum can.

rhodod

Flyboy152 wrote: »

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.

Im 100%, the business was started over 20 years ago, they have only been together for 16 years, he has never had to sign anything to do with her business, he has never really got involved, just left her to it. The business was struggling so he remorgaged the house for 20k and her business partner did the same.

How would he go about double checking?

rhodod

fermi wrote: »

If I was him I would still take Penelope Penguin's advice and get him phone Business Debtline or National Debtline.

It's free to phone.

http://www.nationaldebtline.co.uk/

http://www.bdl.org.uk/

We can give an opinion here, but it's no substitute for one-on-one advice from a proper debt advisor.

If he talks it though with one of those, and they still say "No. Not your problem", then that will give him much more confidence and peace of mind than and 3rd party opinion on an internet forum can.

I will get him to give them a ring, as he wants to be 100%

Flyboy152

rhodod wrote: »

Im 100%, the business was started over 20 years ago, they have only been together for 16 years, he has never had to sign anything to do with her business, he has never really got involved, just left her to it. The business was struggling so he remorgaged the house for 20k and her business partner did the same.

How would he go about double checking?

I would recommend he write to her solicitor explaining what you have written here and asking them for any evidence that he is liable for these debts.

My guess is that they are just holding out for more money from him and are relying on a perceived notion of naivety on his part.

NeverAgain_2

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

Yes, as a debt secured on the property, it must do.

If the total profit on the house is £200K, there will be £180K left to share.

This should be fine by the father because he accepts he must pay half of the £20K.

I agree with everyone else that father cannot be liable for any other of his wife's business or personal debt.

Looking at it another way, I wonder if father could claim the £20K was a loan to the business, making him a creditor of the business.

He could then pursue that debt, although if the business is a limited company, his chances of getting any money are slim.

But if his wife is a sole trader, he could pursue her personally, which would be worth doing because she has her share of the house.

societys_child

So . .. is it just the wicked stepmothers word that her solicitor has said this?

rhodod

@ NeverAgain

The company is not limited, he doesnt mind paying half of the 20k.

@ societys child

Yes, and i think this is probally to fend my father of her pension as she has a very very good pension, which my father is not interested in anyway.

NeverAgain_2

...The company is not limited, he doesnt mind paying half of the 20k...

Thanks.

If he's going to write to the solicitor disputing liability for the ex-wife's other debt, he could also add that in his view the £20K was a loan to his ex-wife's business and he will be seeking repayment from the business/her because they are one and the same thing.

I know he doesn't mind paying half of the £20K, but there's no point in putting it that way.

If he says anything, better to say it is his understanding the £20K, as a secured loan on the house, will come out of the sale proceeds.

rhodod

quick update.

My father seen a solicitor today, and the solicitor said he would be liable to pay half of her debt since the debt happened during their marriage?

roger196

rhodod wrote: »

quick update.

My father seen a solicitor today, and the solicitor said he would be liable to pay half of her debt since the debt happened during their marriage?

This has not applied for many ,many years in England. There is liablity for spousal debts in some foreign jurisdictions eg I believe California but you, if relevant, would need to check .

A spouse is not responsible for the other spouse's debts unless the debt has been incurred jointly, for example, they are joint tenants, or one has acted as guarantor for the other. An exception is council tax where a couple is jointly and severally liable.
In regard to the wife's business, are you sure that your father's name does not appear on any printed stationery. Were accounts submitted to HMRC in his name? Has your father acted as guarantor?