During divorce or separation finances can take a long time to sort out and things cannot be resolved overnight, but ignoring joint finances during this difficult time and hoping things will ‘sort out’ is not the way to go. Research has revealed that relationship breakdowns contribute to 52% of all debt problems.
Experian Credit Expert have estimated that up to 6.8 million Britons have suffered financial problems due to a relationship breakdown. This will affect your credit rating – if you had joint mortgages, loans, credit cards or bank accounts and your ex gets into financial difficulty, Experian say that the other partner will be listed as ‘financially associated’ and listed on a credit report. This ‘association’ will stay on a credit report whether or not the relationship has ended and will certainly affect your future borrowing. Experian say that it is possible to file for a ‘financial disassociation’ to get your name removed, but many people fail to do this.
Heidi Cardoza, Family Solicitor, says “Everything in joint names means joint liability, so make sure you pay off debts and sever financial ties as soon as possible. Creditors are entitled to pursue you for joint debts even if you didn’t spend the money yourself.” Even if the court mentions division of assets it does not absolve you of the responsibility of paying – if your partner is awarded the marital home but the mortgage is in joint names you will still have a contractual duty to pay the mortgage until the contract is changed.
For a free initial meeting please call 01202 499255 and a member of the team will be happy to discuss any questions you may have.