Divorce proceedings often bring financial complexities, especially concerning debts accumulated during the marriage. Understanding your responsibilities regarding your spouse’s debts is crucial to protect your financial future.
Joint vs. individual debts
In the UK, debts are categorised as either joint or individual. Joint debts, such as mortgages or joint credit cards, are typically the shared responsibility of both parties. Lenders can pursue either party for the full amount owed. Conversely, individual debts incurred solely in one spouse’s name are generally their responsibility. However, if these debts were for the benefit of the family (e.g., household expenses), courts may consider them joint liabilities during divorce proceedings.
Recent legal developments
A landmark Supreme Court ruling in 2025 emphasised the importance of recognising economic abuse in financial agreements. The court highlighted that lenders must ensure borrowers are not under undue influence when entering joint financial commitments. This ruling underscores the need for independent legal advice in such situations to protect vulnerable individuals.
Protecting yourself from spouse’s debts
To safeguard your financial interests during a divorce:
- Financial settlement orders – Obtaining a legally binding financial settlement can clearly outline each party’s responsibilities regarding debts, providing clarity and protection.
- Clean break orders – These orders can sever financial ties between ex-spouses, preventing future claims on assets or liabilities.
- Monitoring credit reports – Regularly checking your credit report can help identify any joint debts or financial associations that need to be addressed post-divorce.
Understanding the nuances of debt responsibility in divorce is essential. Seeking legal advice can provide clarity and ensure your financial rights are protected.
How the court treats debts in financial settlements
When a couple divorces, the court has wide discretion under section 25 of the Matrimonial Causes Act 1973 to divide assets and debts in a way that is fair and reasonable. That includes reviewing both parties’ liabilities. However, the court does not automatically assume that one spouse is responsible for the other’s debts – especially if those debts were incurred recklessly, secretly or for purposes not related to the family.
If, for example, one party has taken out personal loans for gambling or has accrued significant credit card debt without the other’s knowledge, the court may decide that the debtor alone should bear that burden. On the other hand, if debts were incurred jointly or used to fund shared living expenses, they may be split more evenly.
Can my spouse’s debts affect the financial outcome of my divorce?
Yes – even if a debt is not technically in your name, it may still influence how the court distributes assets. For instance, if your spouse has substantial personal debt, the court may award them a larger share of the marital assets to help manage those liabilities, depending on the broader financial picture.
Likewise, if joint debts are significant, the court may consider how those obligations will be serviced after divorce. This can reduce the amount of liquid assets or property that can be distributed between spouses.
This is why full financial disclosure – including details of all debts – is a legal requirement during divorce proceedings. Failing to disclose debts or attempting to conceal them can lead to serious legal consequences and may result in court orders being overturned.
What if my name is on a joint account or loan?
If you and your spouse share a loan or credit agreement, you are both legally responsible for the full amount. This is known as “joint and several liability,” and it means creditors can pursue either of you for repayment – regardless of who actually spent the money.
Closing joint accounts or converting them to single accounts should be a priority where appropriate, particularly if you’re concerned your ex-partner may continue to borrow against shared facilities. It’s also wise to write to lenders and explain the situation as early as possible.
Bear in mind that financial associations (such as joint loans or mortgages) can remain on your credit report even after divorce, potentially impacting your ability to obtain credit. Legal advice can help you determine the best steps for removing these associations.
The importance of legal advice
Dividing debts is rarely straightforward, especially when large sums or emotionally charged circumstances are involved. Without clear agreements in place, you could end up being chased for debts that weren’t yours to begin with. That’s why it’s critical to work with a family law solicitor who understands the complexities of financial settlements, credit obligations and long-term protection.
At Osbourne Pinner, we regularly assist clients in reviewing, negotiating and finalising divorce financial settlements that address debts as well as assets. Whether your situation involves credit cards, loans or hidden liabilities, we can help ensure you get a fair and legally binding resolution.
We offer a free 30-minute consultation to assess your circumstances and discuss your options. Contact us today via the form below, call 0203 983 5080 or email [email protected] to speak with a local divorce solicitor.
Whether you’re based in London or further afield, we’re ready to support you through your divorce and financial settlement. Choose from offices in Harrow, Canary Wharf, Piccadilly Circus and Manchester – or arrange a video call to talk through your case remotely.
