Credit card debt and joint accounts

Cazzaroo

Hi,

My sister has recently split with her husband and they have a joint savings account.  She has found out that he has been using money over several credit cards in his name for gambling and ramped up a sizeable amount of debt.  They have a joint savings account which the credit card company (same bank) have said they may use to pay off either part of full amount of the debt.  She found this out today after finding a letter from 3 weeks ago.

She is now in full panic mode about the savings.  1st question, can they do this if there are 2 names on the savings account and if she moves the money to her current account (different bank), is this considered fraud i.e. moving money so credit card team can't access it?

Thought I might get a quicker answer on here than her waiting for the bank in the morning.

I know this might sound a bit daft, but I am really not sure.
Thanks

[Deleted User]

Yes, they could, although it's a power which is seldom used.

It's not fraud for her to move money, but it may raise suspicions and could lead to restrictions on the account.

Cazzaroo

Thank you.

What's the best thing to do?  

[Deleted User]

Talk to the bank. Explain the situation, the divorce and the joint account and see if they can split the money so she gets her share and the rest can go on his debt

missile

She is jointly liable for whatever debts her husband may have.

I would remove half of the savings to the account in her name.
I would contact a solicitor asap and start divorce proceedings.

cx6

any savings in a joint account belong jointly and severally to each party

your sister should remove all the savings to an account in her sole name before her husband does (*)

the same with credit cards ie if her husband can't or won't pay she will be liable for the whole card debt. She should get the card blocked immediately before more debt is run up.

(*) on no account ask.the bank.to block the joint savings account unless this is a last resort as once that is done she will be unable to access the money unless her husband agrees

SuperAllyB

cx6 said:

any savings in a joint account belong jointly and severally to each party

your sister should remove all the savings to an account in her sole name before her husband does (*)

the same with credit cards ie if her husband can't or won't pay she will be liable for the whole card debt. She should get the card blocked immediately before more debt is run up.

(*) on no account ask.the bank.to block the joint savings account unless this is a last resort as once that is done she will be unable to access the money unless her husband agrees

Really? If the cards are in his name, surely she will only become liable if she agrees to as part of any financial settlement?

cx6

if the card is in his name only, then they can use the joint savings account to pay it off as thr savings are 'jointly and severally' .

she should transfer the savings immediately

Brie

And make sure that anything that is her money that is being paid into the account (pay? benefits?) is changed to paying into an account with just her name.  Once done that's when I'd be phoning the bank to inform them about the divorce and to say she wants her name taken off the account.  That way they will just be dealing with him and his debts.

Thrugelmir

Cazzaroo said:

  They have a joint savings account which the credit card company (same bank) have said they may use to pay off either part of full amount of the debt.  She found this out today after finding a letter from 3 weeks ago.

What does the letter actually say. As the bank is unlikely to allow the funds to be accessed. Given the threat of calling upon them to offset the debt. 

kaMelo

Credit card debt solely in his name is his debt and, contrary to some posts on this thread, she is not and never will be responsible for it.