• March 29, 2024
 The UK’s most innovative divorce firm reveal how you can end up liable for your ex-spouse’s debt

The UK’s most innovative divorce firm reveal how you can end up liable for your ex-spouse’s debt

A major part of the divorce process is the division of assets, which will also include both your mortgage and any debt you may have e.g., credit cards or any finance taken out. Even though they aren’t classed as an asset, they still need to be considered to reach a divorce financial settlement.

The UK’s “most innovative divorce and family law firm” Fair Result shed light on which party is liable for debts during the divorce process, and how these are divided.

Chris Sweetman, Director of Fair Result, commented:

”Usually, you’re only responsible for any debt which has been signed up for your own name. However, it isn’t always quite that simple during the divorce and financial settlement process.

Debts may be split between parties if they’re classed as ‘matrimonial debt’ which means they were taken out for the benefit of both parties. For example, if a family car is used by both, but only taken out in one spouse’s name, the court may consider this to be a matrimonial debt and order both parties to pay their fair share.

The court begins divorce proceedings with the assumption that all debts signed for during a marriage are classed as matrimonial debt. So, in certain cases, all debts will be split during the financial settlement regardless of who signed to begin with.”

The different types of debt to consider during the process:

  • Joint Debts/Loans – A debt that was co-signed by both parties (e.g., Mortgage, car loan, joint credit card)
  • Matrimonial Debts – A debt, which is in one spouse’s name, but was taken out for the benefit of both parties.
  • Debts are taken out as a “joint debt” but are only beneficial to one party.
  • A debt which has been signed following separation.

Sweetman concluded:

“It’s crucial to remember that joint loans consider both parties responsible for repayments. So, make sure that your lender is aware that you are currently going through the divorce process and don’t miss out on any repayments.”

Find out more about debt during the divorce and financial settlement process here

Contact details:

This article was submitted to be published by Fair Result as part of their advertising agreement with Today’s Family Lawyer. The views expressed in this article are those of the submitter and not those of Today’s Family Lawyer.

Fair Result

Fair-result is a progressive, innovative divorce services business, serving primarily the UK market, but we will operate internationally when required.

Our focus, as the name suggests, is to deliver fair and equitable solutions to divorce settlements, to alleviate the stress and heartache on families during a very stressful period.

The legal process in divorce and separation is pretty simple, and we will do this as part of our service to you, but that is not where the costs arise. Most costs come from the negotiation of the financial settlement and every lawyer in the UK will not provide you with a fixed fee for this work.

This is where we are unique. A totally fixed fee divorce service for all aspects including court time, barrister fees, valuations, and anything else that is required, all agreed upon in advance and payable only when the court agrees upon the consent order.

We are different in that we take the risk of an unreasonable spouse on the other side, and we are confident in our ability to negotiate a fair deal for you.

Ask us for a fixed fee quote, and then ask any other lawyer for the same – We’re sure we will quickly hear from you when they won’t provide such support!

 

Key Services

Divorce and separation: https://fair-result.co.uk/what-we-do/divorce-and-separation/
Divorce Financial Settlements: https://fair-result.co.uk/what-we-do/divorce-financial-settlement/
Separation agreements: https://fair-result.co.uk/what-we-do/separation-agreements/
Civil partnerships dissolution: https://fair-result.co.uk/what-we-do/civil-partnership-dissolution/

 

Company Address

4 Grove Close, Packlington, Leicestershire, LE65 1SR

 

Key Contacts:

Peter Marples
0333 5777009
07979857438
peter@fair-result.co.uk

Chris Sweetman
0333 5777009
07500 933 818
chris@fair-result.co.uk

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