Debt after seperation

I'll try to keep this brief as I'm new to this and I'm sure this question has been asked before. Me and my ex-wife got into a bit of debt when we were together. We had around £36k of debt which was used for things like wedding, holidays, kids growing up etc etc so all joint expenditure. My wife took out most of the debt in her name. I had some of it in mine which is now paid off with help from my parents. My credit rating is poor and my ex-wife had a failed IVA last year so we would struggle for a consolidation loan.


We want to go our separate ways, I am living with my parents and earning £35k a year, she is still in the rented accommodation but only working part time is struggling to make the payments. We are looking for the quickest and easiest way to split the debt down the middle and deal with it separately whichever way we see fit.


Can anyone advise the best way of doing this taking into account the poor credit ratings?


Thanks in advance.

Comments

  • Gaz83
    Gaz83 Posts: 4,047
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    How much debt is there currently, both in her name and yours?

    You could apply for a loan for half the amount that's in her name and give it to her. That way she has half, you have half.

    You probably won't be accepted, but worth a try. Failing that, there's not a lot you can do. Set up a standing order to give her half of the monthly repayment perhaps.
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
  • What are the issues on your credit file? Credit ratings in themselves have no relevance - only the history on your files.

    If she is carrying most of the debt and you want to split it in half, you'll need to give her some cash or pay off some of her debts.

    Once you understand what your credit history is like, you can look at appropriate options. Eligibility checkers will help.
  • Thanks very much for the prompt advice. The remaining debt I think is around £26k so I would just need around £13k to split things down the middle.
  • sourcrates
    sourcrates Posts: 28,717
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    JLS9999 wrote: »
    Thanks very much for the prompt advice. The remaining debt I think is around £26k so I would just need around £13k to split things down the middle.


    Who`s names is the debt in, yours, hers, joint, or mixture ?


    You are only liable for debt in your own, or joint names, no one else's.
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  • System
    System Posts: 178,077
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    Debt in your name is your problem.
    Debt in her name is her problem.
    Debt in both names is both of your problem.

    You can go your separate ways right now, nothing is stopping you. Legally at worst all you have to do is contribute or pay all of any joint debt which she cannot contribute towards. The only obligation to paying debts in her name is a moral one, certainly not a legal one.

    Given you most likely won't be able to get a loan your only other option to split debts down the middle is that given your income and likely very low outgoings is to pay her £1000 or so a month until you reach the £13k.
  • antrobus
    antrobus Posts: 17,386 Forumite
    Tarambor wrote: »
    Debt in your name is your problem.
    Debt in her name is her problem.
    Debt in both names is both of your problem.
    ...

    Not if you are married.

    family courts presume that debts incurred during a marriage are familial debts until shown to be otherwise

    https://barcankirby.co.uk/debt-after-divorce/

    The OP refers to their "ex-wife" but says that they want "to go our separate ways", so I'm not really sure whether they are divorced or not. It is fairly standard to agree who gets or pays what in the consent order.
  • TBagpuss
    TBagpuss Posts: 11,198
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    A court in any divorce proceedings can't transfer the debt as they don't have tho power to change the contract between one of you and the third party creditor, but they can address the debt by transferring any assets to the person whose name the debt is in, to enable them to pay it, or if there are no assets, the court could make an order for maintenance to effectively split the repayments.

    In terms of you taking on some of the debt directly, you'd need to make enquiries about your borrowing capacity, but also take into account the cost of borrowing, and whether any loan you could get now would have the same, or higher, interest rates to those your wife is paying on the relevant debts .
    All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)
  • Ergates
    Ergates Posts: 2,108
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    sourcrates wrote: »
    Who`s names is the debt in, yours, hers, joint, or mixture ?

    You are only liable for debt in your own, or joint names, no one else's.

    Given the OP says that the debts were run up on joint thing and is actively wanting to do the "right" thing by splitting it with his ex , maybe lets not try to discourage him.
  • Pixie5740
    Pixie5740 Posts: 14,515
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    Even if you somehow manage to get a loan and pay half the debt off will your ex-wife be able to meet the payments on the remaining half? Since neither of you appear to be home owners I wonder why your wife went down the IVA route instead of bankruptcy? Do you know what the reason for this is?

    The reasons for my questions are that you may as well be hanged for a sheep as a lamb. If your ex-wife would still struggle after half the debts are paid off then she may as well go bankrupt for the full amount rather than half.

    Another option to consider would be full & final settlements for the debts or half of them. I presume that since there was an IVA all the accounts are defaulted. The creditors will probably accept a lesser amount than the outstanding balance just to be rid of the debt.
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