Divorce and debt - who's liable?

[Honeymum]

It looks like my BIL is on the brink of divorce. He's been with his wife for a few years but married for just over one. His wife has a history of building up credit card debts whereas he has always been extremely tight good with money.

He has ended up in a lot of debt (20k, not including mortage debt, obviously) as a result of keeping her in the style to which she is accustomed. Money has always been a big issue between them and it appears that he has always, stupidly, given her what she wants). A few months ago things became critical. At least one mortgage payment was missed as a result, maybe more. Since then BIL has been juggling his relatively meagre salary to cover all outgoings, whilst she continues to spend all she earns, refuses to address the issue or pay back anything other than the minimum. She also pays less into their joint account than she should.

At some point he used his credit cards to pay off a portion of her credit card debts (around 5k I think but not sure), in addition to the other debts he'd built up paying for, amongst other things, their wedding and lavish honeymoon.

He has now moved out of the marital home (which he continues to pay for as before). There's no equity in it by the way, and they are likely to be in negative equity.

My question is, is he liable for all of the debt in his name or can he pursue her for any of it?? As I said earlier he can prove that he was always debt-free prior to the marriage.

A sad and sorry state of affairs.

Any advice much appreciated.

can bil proove that these are her debts? receipts etc. if not your bil will have to pay the debts that are in his name, this is what happened in my case. xh made me get loans to pay for new kitchen and central heating etc, i had to pay these bills when we got divorced as he wouldn't let me have anything out of the house, wasn't even allowed my birth certificate. bank statements, receipts etc

I'm pretty sure he's liable for the debts in his name. I don't think creditors will be fussed on why or for whom he took them out, they'll just want paying and his name's the one they gave credit to.

Perhap try the legal board?

He needs to ask a solicitor these questions. He is likely to be responsible for half the debt if married, possibly more if debts just in his name.
Being in love isn't an excuse for spending above your means.
Him blaming her for letting her drag him into debt isn't helpful, he'd have been better trying to save money on the wedding and not give her extra money to spend.
I wouldn't let a man drag me into debt.

Yes, I think I should probably try the legal board thanks buzzsore.

I agree wholeheartedly 2rebecca, but it's happened now and it's about damage limitation.

I'm not even convinced he will try to recover any of the money from her . The sensible thing would have been to keep saying no to her from the start. God knows why he let it get this bad.

as long as it isnt in his name he should be ok, he should also be able to prove they didnt collectively benefit from the debt (items) she purchased - assuming they were made within the marriage.

sorry misread totally duh! the courts will not take kindly to your sil behaviour of rash spending. unfortunately in the eyes of the creditors the debts belong to him however, this may be taken into account by the residing judge when assessing the separation costs and who gets what. i agree damage limitation now. solicitor ASAP and cut all money going to her

also speak to a finiancial advisor - for free - just google IVA - call a few to see if you get similar results. there is no obligation just ask for initial advice this will put his mind at rest/ make clear the situation in his head.

Good points iseeyou. I think he was very rash to take on her debts but he did it thinking that the marriage still stood a chance and she would try to change. The trick now will be to convince him that it's time for no more mr nice guy....

first thing he should do is phone the creditors and ask them to stop the interest accruing on his debts - they'll pass you from pillar to post, but it worked in my situation which was identical. Then he should assess what he can pay, and offer a sum ('ex gratia') to settle the amount outstanding even if it's only 10 % of what the debt is. I agree that BIL is liable for loans in his name, but the lender would rather get something than nothing..... and forcing bankruptsy on a person is neither good PR nor helps your BIL. Your BIL should get statements from his bank showing transfers into hers - difficult if they have a joint account.

He should stop paying anything from now on - finished - then see how she starts to react

good luck

Hi m18c16
He's worried that his name is still on the mortgage (and will be til they sell if that's what they decide to do) and she would default, guaranteed leading to his credit history being shot to smithereens.

He needs to either sell up or get her name off the mortgage and her out. The latter hopefully.

He is liable for debts in his name, she is liable for debts in her name.

Joint debts become joint liabilities, however if one defaults they go after the other one.

He should only be paying his own debts.