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Are You Liable For A Partner’s Debt

Are you liable for a partner’s debt or an ex-partner’s debt? The short answer is ‘No’ but you do need to check whether the debt was in joint names or if you agreed to act as a guarantor.

If your partner cannot clear their debt, you are not liable for it. It’s worth knowing that each person’s credit history is an independent matter.   Your partner’s debt will not affect your credit score or history. 

However, there are some exceptions to this rule. 

  • Do I Have To Pay My Partner’s Debt
  • Does My Credit History Affect My Partner
  • What Happens If We Separate
  • Joint Debts
  • Working On Debt Repayments Together
  • Conclusion

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Do I Have To Pay My Partner’s Debt?

You are not responsible for your partner’s debt if they take it out independently from you. For example, if they take out a credit card or loan in their own name, this does not affect you, even if you are in a relationship or married to them. 

But, if you take out a joint loan, a joint credit card or joint mortgage, then both parties are equally responsible for the debt, this is referred to as ‘joint and several’ liability. 

Where a debt is joint and several, and the repayments have not been made as agreed, the lender is free to pursue both parties for payment. It is a common misconception that you must pay your ‘half’ of the debt but this is not generally the case, the creditor can pursue either or both parties until the debt is paid in full.

Does My Credit History Affect My Partner?

If you are the one in debt, then it will not affect your partner or their credit history. Your own debt is your own responsibility, not your partner’s, wife’s or husband’s.  Even if you’re married, your credit score is independent and will not be affected by each other’s credit history. 

Where it can affect your partner is if you want to apply for credit in joint names. For example, perhaps you want to apply for a joint mortgage, a joint personal loan to make home improvements or just a joint bank account. If one of you has a low credit rating, then you may not be able to borrow the money or open the account you would like.  A lender may look at the poor credit score and decide not to approve your application. 

What Happens If We Separate?

If you and your partner separate, then you are still both responsible for any joint debts you signed for together. 

But if your partner took out debts in their own name, they are personally responsible for them. You don’t have any legal obligation to pay your partner’s debt if they took it out independently from you. 

Furthermore, if your partner gets a low credit score as a result of going into debt, that is their responsibility and not yours. 

Joint Debts

As already mentioned, with any joint debts you have, you’re usually both liable to repay the whole amount. Effectively the lender will take payment from whoever they can persuade to pay first. Which means that if your ex partner doesn’t pay their share, the bank might ask you to make all the payments. Here’s what to do next:

  • Contact your bank or lender to talk to them and tell them you’ve split up. They might allow you to separate the loan. 
  • See if you can put any restrictions on the account so your ex-partner can’t run up any further debt.
  • Ask about the possibility of reaching an agreement to accept lower payments or to settle your liability to the debt. 
  • Speak to your ex-partner, you may agree to continue making payments from a joint account. 
  • Or, arrange that one of you continues to pay the bank, but receives a contribution from the other. 

If your ex-partner refuses to make their share of the debt payments, you may have a case for taking them to court to demand an equal share.  Bear in mind that if you took out credit agreements when you were together, they remain joint agreements in the eyes of the law even if you separate or divorce.

Working on Debt Repayments Together

Although you are not liable for your partner’s debt, if you are together and their credit history is poor, this may affect decisions you make together in the future, such as getting a mortgage.

Therefore, you could both benefit from improving your partner’s debt situation.  You can find out what your credit score is, and your partner can check theirs, for free via a credit reference agency.  This will help you to get an overall picture of the debt you have individually and as a couple. Remember not all debts are reported to the credit reference agency, for example council tax arrears, benefit over payments and some pay day loans.  

Then if your partner’s debt is looking difficult or unmanageable, you can talk to them about ways to improve it. Make a budget together and consider how dealing with your current  debt can also improve your chances for loans in the future.

Conclusion

To sum up, are you liable for a partner’s debt? Only if you have joint debts with co-signatures or have acted as a guarantor, otherwise you are not liable for any personal debt that your partner or ex-partner might have.  However, helping your partner to improve their credit score and repay their debts can have a significant positive effect on both of you.  Remember that you can speak to a debt adviser for free who will help you both to manage your debts.