Question
A friend told me about your site, and said I should ask you about my situation, which is dire.
My husband and I are getting a divorce after 20 years of marriage. I found out he has had numerous affairs, and I told him I wanted a divorce.
We own a property together outright, and have another property we let out. There is a mortgage still on the let property which has a balance of around £50,000. In addition we have a credit card with a £4,000 balance, and a personal loan of £10,000 which was used for repairs on the property we let.
What happens when we divorce? Who pays the loans and bills?
Thanks for taking my question.
Answer
Hi,
I understand what you are asking, and for many couples the impact of a divorce clouds who pays what and how the finances are to be shared.
If the properties and the one mortgage and any other debts are in both your names, you both not only share in any equity or assets, such as the property owned outright, but you are both equally liable for any debts, such as the credit card and mortgage and personal loan.
If an account is in just one person’s name, then that person owes that account.
Sometimes it can be difficult when emotions are high, but you need to sit down and decide who gets what in terms of assets, and who will pay what debt, keeping in mind you both are still liable for any debts in both your names.
If you and your ex cannot agree on terms, you may wish to seek out a mediator to aid you in this.
Regards,
Jon