Figuring out if you are responsible for paying any of your spouse’s debt can be tricky. We explain everything you need to know to help you manage your finances, protect your money, and avoid unexpected surprises.
You're only responsible for debts in your name or debts you have taken out together.
Debts solely in your spouse’s name are their responsibility. This is true whether they took out individual debts before or after you got married.
It’s also good to know that your spouse’s individual debts don’t affect your credit score.
Many people think that when you take out joint finance (like a joint loan or mortgage), you only owe 50% of the balance - but unfortunately, this isn’t the case. You're both responsible for repaying 100% of the debt.
If one of you can’t pay, the other has to make the full payment, regardless of who spent the money. This is called ‘joint and several liability’.
With joint debts, both of your credit scores should increase if payments are made on time. By the same token, both of your credit scores will go down if any payments are missed.
You are responsible for paying any debts that are in your name, whether they’re joint or individual. There are also some scenarios which might be a little less obvious, such as:
If you’ve signed an agreement promising to be a guarantor on your spouse’s loan, you’ll need to cover the debt if they can’t pay. This can affect your credit score and financial situation as well as theirs. So, it’s crucial to understand the consequences before agreeing to be a guarantor.
Often, couples are jointly responsible for household bills (such as utility bills or council tax), even if there is only one name on the account. This may apply whether you are married, living together, or in a civil partnership. So, it’s best to check with your provider to check who's on the bill and who needs to pay.
If you have a joint debt, like a mortgage, and are going through a divorce, both you and your ex-partner will need to make the repayments until a financial settlement is made. This is still true, even if you or your partner has moved out.
It’s important to keep up with payments on a mortgage or secured loan to prevent your property being at risk of repossession.
You could sit down with your spouse to look at any loan or credit agreements, to see if your name is included. If you don’t have a copy, your lender or provider should be able to post or email one over.
Money can be a sensitive subject, but it might be helpful to talk to your partner about any debts that you may have. Then you could make a plan together about how to tackle both of your finances. Read on for our tips on how to tell your partner about your debts.
Once you’ve talked about what debts need to be paid, you’ll both know where you stand. Creating a budget can help you feel more in control of your finances and work out a plan for how you can both pay your debts.
To calculate how much spare cash you have each month, simply list all your monthly outgoings and deduct this from your monthly income (after tax).
It’s also smart to set up Direct Debits for your household bills, joint debts and individual debts. Here are some key benefits:
Many couples have joint bank accounts, which can be very useful for paying household bills. But also having separate bank accounts can help you to effectively manage your own money. So, it may be worth looking into, if you haven’t already.
It might also be a good idea to have your own savings pot, which can provide a safety net in case of any financial issues.
If you’ve got joint accounts with your spouse or ex-partner and they have a worse credit score than you, it could make it harder for you to get approved for finance.
Lenders will be able to see if you are financially tied to someone else when they check your credit report (even if you are divorced). They may refuse your application if they’re concerned that you’ll overstretch yourself by helping your partner to repay their debts, for example.
In this situation, removing joint finances from your credit report may help to boost your eligibility for finance. It could be worth speaking to your spouse or ex-partner about this to see if they agree to close any joint accounts that they are named on. Then you can ask the credit reference agencies for a ‘Notice of Disassociation’.
Bear in mind, this is only possible when there’s no outstanding balance left.
You and your partner could seek unbiased debt advice to help figure out your options and who is responsible for paying what. Debt advisers can also support you in creating a plan to manage any joint or individual debts.
For more free, professional advice, get in touch with Money Wellness, MoneyHelper, StepChange, National Debtline, or Citizens Advice.
If you’re worried about your spouse’s debt and going through a divorce, speak to a solicitor for advice. This can give you peace of mind and ensure you are taking the right steps to protect yourself.
Read on to find out if you should split the bills 50/50 or how to sort your money out after a breakup.
Disclaimer: We make every effort to ensure content is correct when published. Information on this website doesn't constitute financial advice, and we aren't responsible for the content of any external sites.
Adele is a personal finance writer with more than 10 years in the finance industry behind her. She writes clear and engaging guides on all things loans for Ocean, as well as contributing blogs to help people understand their options when it comes to money.
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