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advice needed on loans that are in my name for a joint debt

(6 Posts)
bella1968 Mon 17-Mar-14 10:50:08

Hi, I should appreciate any advice regarding financial debts in a marriage when we separate/divorce please.

We have taken out 2 loans one for a timeshare which is owned by the both of us and another to consolidate credit card debts both of which are in my name. As the debts were both of ours and he couldnt' get the loans in his name at the time does this mean that on separation/divorce I am responsible for the debt?

The more I read the more I get conflicted information.

I am trying to prepare for eventual divorce on unreasonable behaviour/verbal and emotional abuse to me and my 2 children but I need to make sure that I don't leave myself in a worse state than we are already and want to avoid selling the family house at all costs.

Thank you for your help and advice.

babybarrister Mon 17-Mar-14 12:04:01

It is a black and white issue I am afraid so yes the loan are yours alone. The credit card company etc is not interested in how they came about. It has nothing to do with them. They can only sue you for the money.

Having said that when you resolve the finances on divorce, provision can and should be made for the fact that you will have this extra obligation

Do you have a solicitor? Go and find one in the Resolution listings if not as they list specialist family lawyers

bella1968 Mon 17-Mar-14 15:29:17

thanks babybarrister I feared that was going to be your answer sad

bella1968 Thu 20-Mar-14 10:35:12

babybarrister do you mean that if I filed for divorce the courts would take this debt into consideration as a debt that had been built up during the marriage and therefore split the cost?

I will have a look on the resolution website for a solicitor as advised but just wanted the clarification in the meantime.

Thanks.

Collaborate Thu 20-Mar-14 11:42:10

The court needs to know the net value of assets when dividing them on divorce, so the amount of debt is very relevant. If in fairness the assets should be divided equally, each will receive the same value of net assets. The court can't actually divide a debt as it interferes with the creditor's rights.
Whether the fair split is equal or unequal depends on a number if factors. Look at s25 of the Matrimonial Causes Act 1973. Legal advice will be needed (ie not from strangers in this forum!).

bella1968 Thu 20-Mar-14 12:13:33

thanks collaborate, I've checked out the section of the Act, which is helpful.

The more I ask and more I read I understand that I will have to go to court should I decide to divorce so that both parties have a favourable conclusion. As well as children being involved this seems to be the way it will go.

thanks again.

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