Debt- in my name but benefitting us both, AIBU? Any advice.

[Iwishihadamoneytree]

Namechanged for this so not linked to other posts, others are aware I'm posting this.

We need a loan. We can afford the repayments, the apr is reasonable. We have a small loan now, the plan is to "top up" this loan as this is the most affordable way to do it.

However, and here is my problem, the current loan is in my name. I could just about afford this alone if I needed to. The top up loan will still be in my sole name but I could not afford the repayments alone. I have no intention of divorcing my husband and, as far as anyone can be, I'm sure he's not planning on divorcing me. But nevertheless people do divorce and I don't want to be left with a loan I cannot pay.

DH credit rating is not as good as mine so there is not the option of him taking a loan. I cannot add his name to the loan either- I've checked, it's a personal loan and so this is not possible. We are renting currently so no joint mortgage to secure a joint loan against.

From what I can gather, in the event we did divorce, I would be liable for this debt solely. I could argue it was accrued during the marriage and we both benefitted from it and then he would likely be ordered to pay towards it but I'm not sure if this is certain.

DH hasn't said as much, but I can tell he is a bit upset that I'm considering this and that our only option is the loan in my name. I think he's hurt that I'm considering what if we divorced and that I don't want to be in the position of trusting he would do the right thing and pay the loan in the event of divorce- I do trust him, however I've seen a friend badly burnt by not financially protecting herself.

I'm wondering if there is anything a solicitor can draw up to say we are both liable for this debt before I commit to it? Would it be worth the paper it was written on? Has anyone got any advice or experience of this?
Aibu to consider taking this debt at all (I can't see an alternative).

Thank you

Save the money, I would advise against borrowing unless you can do so at around 2 or 3 per cent. If the loan is to benefit you both, then you should take it out in joint names. In your sole name you will be left with the debt to repay if anything happens, and I hate to say it, but i have had so many clients in your position who have been left high and dry by their partner leaving, it really isn't a sensible idea. You can do without that new car/motorbike/extension etc.

Are you sure you really need to money? I think you ought to avoid this situation totally if you can.

No way would I do this! Why is your DH’s credit rating so bad?

You say you “need” a loan. What is this actually for?

How much money and how long would it likely take you (together), on current incomes/other outgoings to pay back the existing and new loan

Whoever told you that you'd be solely liable for debts if they are in your name doesn't know what they are talking about - beware this scary comment!

I've worked in debt recovery for 7 years, a bank for 11 and I'm also an accountant. It is risky unfortunately, if it's in your name the contract is between yourself and the lender only. They will only chase you to repay. Even if a court did order DH to contribute in the event of a divorce, the legal contract with the lender would still only be with you.

If the loan is for an asset, could you put in your name as well? Then you would have something to offset against it should things go wrong.

I was burned like this before with my exH and a car, it didn't even cross my mind not to do it, and then he walked out with the car and left me with the debt... I would say I would never do it again but I have just taken out a loan for our driveway to be done in my own name with my current husband. I suppose it's different tho, we both own the house and the equity the driveway has added far exceeds the cost of the driveway so it's not much of a risk for me. Plus I earn much more than he does.

You are sensible to be thinking it through, plenty of people have been left in a bad situation by stuff like this.

DoublyTroubly- I am preapproved for over double the amount we need. Seems nuts to me but there you have it. I can completely see how people get into unmanageable debt!!

G120810- as you can see from the replies on here, and from my own experience with friends, people have been badly burned by blindly assuming they will never divorce, the old "it'd never happen to me" scenario or by trusting that if they did their spouse would make good previous promises to pay money back- which they never did.

AngelsSins and SleepySheepy- I'm sorry to hear you were in that situation. I've unfortunately heard this too many times and is exactly why I'm wary.

To those asking if we really do "need" this loan, actually we probably don't need it immediately- we need to make repairs. After taking the time to look at the situation we could probably take a cheaper option to tide us over until we can save a bit more. Honestly I think I looked at the easiest option of taking a loan as the money is so easily available- again another reason I can see why people get into such debt!

Home repairs can be prioritised, eg watertightness, damp above maintenance, and done over time. Home improvements - kitchens, bathrooms, decor, patio whatever can definitely wait.

Im not saying people don't get divorced but when I'm getting a loan I don't automatically think what if I get divorce it wouldn't happen to me as I'm not stupid enough to get married but in 12 year relationship with kids both have assets in each of our names and equal debt in our names

Please don't do it. My parents are together but my Dad has accrued debts in my Mum's name. She is in a very precarious position if they divorce or my Dad dies and she sometimes has difficulty sleeping because of this.