Credit card debt and joint accounts

maisie_cat

kaMelo said:

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.

But the debt can be taken into account when net marital assets are split.

Thrugelmir

maisie_cat said:

kaMelo said:

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.

But the debt can be taken into account when net marital assets are split.

Debt belongs to the person whose name is on the account. With the caveat that guarantees could exist. 

kaMelo

maisie_cat said:

kaMelo said:

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.

But the debt can be taken into account when net marital assets are split.

Whilst that is true it is not the same as was suggested by some posts, that simply because they are married she automatically becomes jointly liable for the debt, she does not.
Division of marital assets may mean a joint split but that is a long way away, even then it's not that simple. Debt obtained without the wife's knowledge which, once discovered, forms the reason for the split could well be viewed as his and his alone. 

FeaturelessVoid

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

Nonsense.

Spouses are not liable by virtue of being married to a debtor and joint credit cards don't exist in the UK,

cx6

sorry my post was unclear. The credit card comment was to say the wife is liable fior the husband's card in the context of the joint savings account - the credit card debt can he settled using that money should the bank so wish. My mistake.

Cazzaroo

Thanks for the advice.  

I'm not sure I agree with the Bank's stance on this.

The letter says as per ts&cs, they can access funds in other accounts held with them to either pay part or all debt.

penners324

She is not liable for any debt in his name, however, the savings money could potentially be used to clear some of that debt.

born_again

The letter says as per ts&cs, they can access funds in other accounts held with them to either pay part or all debt.

Standard debt letter. But they could not access a joint account without the other parties permission. If they did they would have a valid complaint.