Joint Accounts & Partners With Debt

ShadyCake

Hi all, 

I'm just moving house with my partner and considering a fresh start with finances by handling shared expenses such as bills and groceries with a joint account where we each pay in an agreed amount then use the account to pay for household expenses. 

My concern though is that my partner has significant debt (albeit that they are currently managing it well) I'm concerned about the impact of having a joint account on my financial standing, for example my credit rating and liability for their debt if this.

I'd be very grateful for any advice on this situation.

Thanks

eskbanker

If you open a joint current account then this does indeed link your credit files, but doesn't actually render you liable to settle his debts.

retiredbanker1

My advice - don't do it - end of.

Northern_Wanderer

You will be liable for the joint account. The bank can chase either one of you for debts accrued on the joint account. He is liable for debts in his name. Things like energy or council tax would have joint liability regardless of who's name the account is in if you both live at property.

PRAISETHESUN

The only debt you will be liable is any joint account - their sole debt is in their name and cannot be moved to your name. It is true however that creating a financial link will mean that when you apply for new credit they will also be searched, and that will definately adversely affect your chances of success.

Personally I wouldn't do it. It's easy enough to manage joint finances without having a joint account.

M25

Why not have a joint account for just 1 or 2 items and see how things go?

It may build trust and help the relationship.

soulsaver

PRAISETHESUN said:

The only debt you will be liable is any joint account - their sole debt is in their name and cannot be moved to your name...

...until you each have a credit card for the joint account.. and s/he pays off debt with credit card and then they're jointly liable for the credit card debt.

Don't do it.

eskbanker

soulsaver said:

PRAISETHESUN said:

The only debt you will be liable is any joint account - their sole debt is in their name and cannot be moved to your name...

...until you each have a credit card for the joint account.. and s/he pays off debt with credit card and then they're jointly liable for the credit card debt.

There aren't any joint credit cards so any CC debt is the exclusive responsibility of the account holder.

Middle_of_the_Road

eskbanker said:

soulsaver said:

PRAISETHESUN said:

The only debt you will be liable is any joint account - their sole debt is in their name and cannot be moved to your name...

...until you each have a credit card for the joint account.. and s/he pays off debt with credit card and then they're jointly liable for the credit card debt.

There aren't any joint credit cards so any CC debt is the exclusive responsibility of the account holder.

Although additional cardholders are permitted.

PRAISETHESUN

eskbanker said:

soulsaver said:

PRAISETHESUN said:

The only debt you will be liable is any joint account - their sole debt is in their name and cannot be moved to your name...

...until you each have a credit card for the joint account.. and s/he pays off debt with credit card and then they're jointly liable for the credit card debt.

There aren't any joint credit cards so any CC debt is the exclusive responsibility of the account holder.

Middle_of_the_Road said:

eskbanker said:

soulsaver said:

PRAISETHESUN said:

The only debt you will be liable is any joint account - their sole debt is in their name and cannot be moved to your name...

...until you each have a credit card for the joint account.. and s/he pays off debt with credit card and then they're jointly liable for the credit card debt.

There aren't any joint credit cards so any CC debt is the exclusive responsibility of the account holder.

Although additional cardholders are permitted.

Additional cardholders still aren't liable for CC debt, as @eskbanker states above.

Ultimately OP needs to make a decision about how much they are willing to expose themself to their partner's poor credit. If they expose themselves to their partner's debt then that's their prerogative, but personally I wouldn't recommend it. Keep their partner's spending in their partner's name, and keep their personal spending in their own name would be my recommendation.

jimjames

M25 said:

Why not have a joint account for just 1 or 2 items and see how things go?

It may build trust and help the relationship.

That seems a bad idea. It doesn't matter how many items, the act of opening a joint account is what creates the financial link that is shown by credit reference agencies