Am I Liable For My Husband's Debts If We Are Separated?

Am I Liable For My Husband's Debts If We Are Separated Separating from your spouse can raise a host of legal and financial concerns.

If you are wondering ,‘Am I liable for my husband’s debts if we are separated?’ our specialist family law team are here to help. With decades of experience in divorce law and practice, we are ideally positioned to support and guide you through the divorce process and ensure your rights and those of your family are fully protected.

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When Am I Liable For My Husband’s Debts If We Are Separated?

The answer to ‘When am I liable for my husband’s debts if we are separated?’ depends on several factors, including the nature of the debt, how it was incurred, and what the money was used for. Below, we set out some common types of debt and explain your potential liability for each one.

• Joint Debt

If you and your husband took out a debt together, such as a joint mortgage or joint bank loan, you are both jointly and severally liable for it. This means that each of you is legally responsible for the entire debt, not just your half. If your husband stops paying his share, the creditor can pursue you for the full amount.

Joint liability continues even if your marriage breaks down and you separate. Unless the debt is settled or refinanced into a single name, you remain legally responsible for repaying it.

• Individual Debt

Generally speaking, if the debt is in your husband’s name only, and you did not sign anything or agree to be a guarantor, you are not legally liable for it. This includes personal credit cards, loans, or overdrafts solely in his name.

However, the situation can be more complicated if the money your husband borrowed was used for the benefit of you both or your family as a whole; for example, he used it to extend the family home or pay for a family holiday. In these cases, the court may take this debt into account when deciding on the divorce settlement.

• Mortgage Debt

If you and your mortgage took a joint mortgage, you both remain liable for the repayments. If you leave the matrimonial home and he remains living there, you would still need to pay the mortgage if he defaults.

The only way you can absolve yourself of any liability for a joint mortgage is by transferring the debt into your husband’s sole name, selling the property and paying off the mortgage, or as part of your divorce financial settlement.

• Guaranteed debts.

If you have agreed to act as guarantor for your husband’s debt, you remain liable for it even after you separate. So, if he defaults on repayments, you are legally obliged to step in and cover them.

How does the court deal with debts when deciding how to split a couple’s assets?

The court has wide discretion when it comes to dividing a couple’s assets for the purposes of a divorce settlement. A judge’s sole concern will be ensuring that any settlement is fair and reasonable for everyone involved, particularly any children.

When coming to a decision on how to divide a couple’s assets, the court will take into account the couple’s complete financial situation, including:

Their income
Their assets
Their earning potential
Their debts and liabilities

Joint debts will usually be taken into account when calculating the net assets to be divided between the couple. When a debt has been incurred solely by one spouse and the money was used entirely for their benefit, the court may decide that the spouse in question should remain wholly responsible for it. If they do, the debt will not be taken into account to ascertain the couple’s net assets.

Our family solicitors routinely support clients in navigating the divorce process. We will ensure that you and your family receive all that you are entitled to and that you are not held unnecessarily liable for your husband’s debts. We understand how stressful divorce can be, and we offer exceptional legal advice with a personal touch.

We always strive to resolve divorce cases in the most amicable manner possible, aiming to minimise the emotional and financial strain on our clients. We frequently achieve excellent settlements for our clients using alternative dispute resolution methods, such as family mediation or arbitration. These methods are cheaper than litigation and take less time, allowing you to finalise your divorce quicker and focus your energy and money on building a positive future for you and your family.