Credit card debt

[LDA123]

So ex is saying that I have to pay 50% of his credit card debt because it was spent on the house before we split. He used the CC to buy things, I had no say.

I have read that any household debt, even if personal debt, is considered a joint liability.

Where do you draw the line though? For example, he also used his credit card to buy thousands of pounds of “collectibles” which he sold after the split and kept the money.

We were half way though a renovation when he left so I’ve had to spent thousands trying to fix essential things for building control. He won’t contribute. I put on a credit card but have worked lots of extra hours, stuck to a super strict budget etc and have paid it off.

We will sell the family home but my sole earning capacity is not that great - although I work nearly full time in a well paid job, I think having 4 dependents, childcare costs etc go against the affordability of the mortgage. He has subsequently left a high earning job and not intending to get another one. Wants to set up own business. Since the split, he has received a bonus and pay-off from work.

Even if I got 100% equity and he kept 100% of his vast pension (I have minimal) we would struggle to be able to afford a home for the 5 of us. It’s so expensive here but kids are all in school etc so moving doesn’t seem an option. With 100% equity, we can maybe afford a 2 or if lucky, 3 bedroom place, kids sharing and I’ll take the box room.

But now he also wants to deduct this credit card debt from the joint pot….. ☹️

Any thoughts? Sorry for the long post.

No, personal debt is not jointly liable.

Where he can prove household stuff (repairs, bills, furniture) that you jointly benefited from was bought from the credit card, he may be able to get that taken into consideration in the division of assets.

But if he was buying stuff for himself that you didn't benefit from, you're not liable, it's his problem, and I would fight it being considered.

Get legal advice.

And honestly, I think you may need to plan to move areas somewhere cheaper, because it sounds to me like he'll pay himself the minimum from his business and hide income to stiff you on child maintenance.

Not as easy as just upping sticks and leaving, I’m down south so all bloody expensive. Surely it would be unreasonable to move the kids miles from their Dad and other family members too. I mean, I’m time I might be able to earn more to increase my mortgage prospects but guess doesn’t happen over night.

I do worry about the CM side of things…. I have no idea what will happen with that and we do depend on it

How does anyone exactly afford legal advice? They’re all quoting £5k plus which I’d have to put on a credit card. I am hopeful we can sort ourselves….. but who knows. I’ve spoken to a couple of the cheaper solicitors for the initial advice. I really don’t want to get into loads of debt though to pay for it. Especially as he is now unemployed and there is no money other than house equity and pension.

Getting into loads of debt for legal advice will harm my mortgage prospects even more ☹️

Yeah, I see your dilemma. It's difficult to know what the best way forward is.

It just struck me with him giving up his paye role and going self-employed, that it's harder to get the child maintenance. Hence being prepared to change area.

If you're likely to get railroaded into giving in to him and losing out, it might be worth the costs of legal representation. But the winners tend to be the solicitors.

Thank you. Just seems there is no easy answer

Can't OP list all the house finishing work (that OP paid for) on to a joint liabilities spreadsheet, and then ask her stbXH to do same. Both need to itemise. This is part of bringing the big joint asset (FMH) into reasonable state for sell/split.

Where are you with steps in the divorce split, OP? Are you going no-fault, have you filed for that, yet? What about forms E & D81?

I've been supporting friend thru a divorce where she had to spend a lot to repair damage her almost-X caused, she spent a lot of time on spreadsheets itemising all the repairs.

ps: mediators cost less than divorce lawyers & you can PAYG. is your almost-X willing to try a mediator ? In theory if you could resolve all the financials & any child custody / support via mediation, then you could take the agreement to somewhere like Wikivorce for the Mesher order/final legalsese document. They seem to charge a bit over £300 including court fees but only if absolutely everything is agreed already.

That sounds a good call - I was thinking it was a shame that OP had spent so much putting the house right and paid it off, and yet he'd be getting the benefit of it.

Put your solicitors costs on your credit card. All debts get totted up against assets and that final number is what gets haggled over. I put my barrister's fee on a credit card so was taken into consideration in the final figure.

Ffs. This is completely incorrect advice as it entirely depends whether you’re married or not!!

If unmarried then the above is true, if married then the general starting point is that everything in the pot is considered, both debt and assets.

A question we received from a prospective client recently was, “We are going through a divorce and are trying to sort out our asset split. He (the husband) says I should pay some towards clearing his credit card. Does anyone know if this is the case?”

With regard to each other’s own personal debts and if the cards are solely in your husband’s name then you are not liable for them to the credit card company.

However, a court could order a payment towards them if he could prove that the debts were jointly raised and you should bear some responsibility.
Again, this would also be dependent on whether you had sufficient assets of your own to contribute.

This arrangement would be dealt with by what is known as a lump sum order. https://www.divorce-online.co.uk/blog/am-i-responsible-for-my-exs-debt-following-a-divorce/

I do not believe you are correct @YaWeeFurryBastard

It is matrimonial debt which will be deducted from your assets to work out the net assets to share.

I’ll just do that - accept that the credit card debt will have to come out of the joint pot(if used on house) but also make a list of all the money I have spent trying to make the house sellable and sign off the building control.

We have applied for a divorce and the 20 week wait is over so technically can apply for the conditional order. However, as we have not sorted the finances, I think it is best to wait.

He won’t go to a mediator. I have suggested it.

So I think all I can do is sit it out until he will discuss the finances and we can get a consent order in place. I really don’t know what else I can do.

What are you on about? You’re contradicting yourself by quoting a random article off the internet that clearly states the divorce court can consider them as part of the marital pot.

Of course the OP isn’t liable to the credit card company. We’re talking about whether the debt will be considered as part of the marital pot, and the starting point is usually yes unless the other party can prove it is unreasonable personal spending and/or which occurred after separation. A basic understanding/experience of marriage law will tell you this, it’s the same premise as how any savings would be allocated as a starting point.

OP I would seek legal advice as there could be a way you can get the collectibles excluded, but please don’t take the advice on here that it’s not part of the marriage pot as that’s simply untrue.