Managing joint debts can be challenging, but My Debt Plan provides the guidance you need. We offer expert advice on handling shared financial responsibilities, ensuring both parties understand their obligations. Our strategies help you navigate issues like dividing payments, communicating with creditors, and protecting your credit scores. Whether it’s a mortgage, car loan, or credit card, My Debt Plan’s personalized approach ensures you effectively manage joint debts.
Collaborating on financial matters with your partner can offer numerous benefits, such as better expense management and potential savings. For instance, many couples opt for a joint bank account when they begin living together, and when it comes to purchasing a house, a joint mortgage often secures approval more easily than an individual one.
However, if the relationship ends or circumstances change, handling shared bills can become challenging, particularly if one party fails to fulfill their obligations, leaving both individuals saddled with joint debts that may seem insurmountable.
Joint debts encompass any financial obligations incurred through a mutual agreement with another person, such as a shared mortgage.
In the event of a divorce or separation, if one partner fails to meet their payment responsibilities, the burden of those debts may fall solely on the other individual.
Contrary to popular belief, joint bills aren’t split evenly between partners; rather, both parties are legally liable for the entire debt amount.
In the UK, when you enter into debt with someone else, each party becomes fully responsible for the total debt, rather than being accountable for only a portion of it.
For instance, if you and your partner jointly take out a £1,000 debt, each of you is legally obliged to pay the entire sum, regardless of individual contributions. This is known as joint and several liability.
Due to the concept of joint and several liability, joint debts cannot be divided. If you undertake joint debts, both parties are responsible for the entire debt amount, rather than just their share.
Certain debts, such as credit card agreements, may be held jointly but are not truly joint debts. With joint credit cards, for example, the primary cardholder bears ultimate responsibility for repayment.
Unlike credit card debts, joint debts cannot be divided. Regardless of any changes in relationship status or financial circumstances, each party listed on the agreement remains liable for the full debt amount incurred jointly.
Debts and bills acquired in your name before marriage remain your responsibility afterward, as do debts taken out individually after marriage. While your credit reports remain separate, one partner’s poor credit may impact the other’s credit score.
Your legal responsibility for joint debts does not change based on personal circumstances. If you share joint debts with a spouse, creditors will hold you accountable for repaying those debts, irrespective of whether you continue living together.
In case your ex-partner refuses to fulfill their obligation, seeking debt assistance may be necessary, as creditors may pursue you for the entire debt amount.
In the event of a partner’s death, joint debts are handled differently. If the debt is solely in the deceased’s name, you are not obligated to repay it.
However, if you jointly owned property with your partner, creditors may seek to use a portion of the property’s equity towards the deceased’s debt.
Similar to the scenario involving a partner’s death, if debts are not in your name, creditors cannot demand payment from you. However, if you acted as a guarantor for the debt, creditors can pursue you for the outstanding balance.
If you’re being pursued for debts you didn’t agree to, request the original paperwork from the creditor. If you suspect credit fraud by an ex-partner, seek debt advice promptly to understand your obligations and protect your financial well-being.
Debt is a common issue, and there’s no shame in seeking help. Encourage open dialogue about financial challenges and offer support to loved ones struggling with debt. Seeking professional debt advice may be the next step in finding viable solutions.
If you’re grappling with debt issues or facing joint debts accumulated by an ex-partner, My Debt Plan’s team of debt professionals is available to offer guidance and support tailored to your circumstances. Contact My Debt Plan today for expert debt advice and assistance in selecting the right debt solution for you. Call 0161 768 4601
Tell us about your current debts and one of one of our experienced advisors will talk you through all the options available.
Dependant on your circumstances and financial situation, we’ll look at the solutions so you can choose an option that suits you.
Once you have chosen a solution, we will take the necessary steps to arrange this for you.
Lucy Novo Deakin is a licensed insolvency practitioner in the UK by the Insolvency Practitioners Association (IPA).
My Debt Plan Ltd provides insolvency solutions to individuals, specialising in IVA’s. All advice given is provided in reasonable contemplation of an insolvency appointment. Where you are not suitable for an IVA, we may refer you to one of our trusted partners who specialise on alternative solutions, and as such we will receive payment for the introduction if you enter into a debt solution with one of our partner companies.
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To find out more about managing your money and getting free advice, visit Money Helper, an independent service set up to help people manage their money.
*Our advice on your options is always free. We will always notify you if a solution you choose has any cost.
**Of 2,381 IVA cases approved between January-December 2023, the average expected write off assuming successful completion is 74%.
A debt write off amount between 25% and 75% is realistic, however, the debt write off amount will differ for each customer upon their individual financial circumstances and is subject to approval of their creditors. Any remaining qualifying unsecured debt in your IVA will be written off, however some unsecured debts will be excluded, such as court fines, child maintenance and student loans, therefore you will need to continue paying these both during and after the IVA.
