I want to divorce my partner but we are in debt, what should I do?

I want to divorce my partner but we are in debt what should I do SOCIAL.jpg.jpg

The decision for married couples to divorce is never an easy one and it can be compounded and more difficult to deal with if you or your partner or both of you, are burdened with debt. 

Yasar Khan, a family law solicitor based at WHN’s Blackburn office, outlines how to determine the type of debt that may be involved, who is responsible for it, and how it is then dealt with through the courts.

Is the debt in joint names or in your partner’s sole name?

If the debt is in joint names, both parties are responsible to pay the debt. If parties are divorcing, it is likely that both parties will share the debts as during the marriage they were entitled to share assets and monies available.

If the debt is the responsibility of the sole party, then the parties need to consider the following:

  • When was the debt obtained? Were the parties married at the time of the debt?
  • What was the purpose of the borrowed money or loans? What was the reason that the sole party obtained this debt?
  • What was the monies used for? Was it used for personal or family expenses or the matrimonial home?
  • Did the other party benefit from this debt? Or were these monies used solely by the party who is responsible for the debt?
  • Who has made payments to the creditor? Has there been payments from both parties or just the named person?

Is the debt pre-marital or marital?

If the debt was incurred prior to the marriage, it is important to determine if the parties lived together as cohabitees but were not married when the debt was incurred. Any debt obtained by a party in their sole name would be classed as their own. This is why it is very important to establish when the debt was incurred, and whether if it was before or after the parties married.

If the parties were married at the time the debt was incurred – it is deemed a matrimonial debt. As with joint assets, the starting point is that all assets or debts are to be shared between the parties upon divorce. Both debts in sole names and in joint names would fall into matrimonial debt.

Once the above has been established, parties should try to negotiate by either attending mediation or instructing solicitors so that the true value of the matrimonial pot can be established, taking into account any debts.

Court process and Section 25 factors that the court needs to consider

If the parties are unable to reach a settlement about the debt, then either party can make an application to the court to seek assistance in obtaining a financial remedy order.

The court will consider the Section 25 factors contained in the Matrimonial Causes Act 1973, which are as follows:

  1. Income, earning capacity, property, and other financial resources which each of the party to the marriage has or is likely to have in the foreseeable future
  2. The financial needs, obligations, and responsibilities which each party to the marriage has or is likely to have in the foreseeable future
  3. The standard of living enjoyed by the family before the breakdown of the marriage
  4. The age of each of the party to the marriage and the duration of the marriage
  5. Any physical or mental disability of either of the parties
  6. The contributions which each party has made or is likely foreseeable future to make to the welfare of the family
  7. The conduct of each of the parties.

In cases, where there are young children in the family, the courts main concern will always be the welfare of any minor and how their needs are to be met.

Courts powers and orders that can be made

Several examples as to how the courts may settle the problem of debt are outlined below:

  • The debts are to be split between the parties equally or unequally depending on the above factors.
  • One party should take sole responsibility of the debt and release the other from any liability.
  • Debt should be paid from the proceeds of sale of an asset or the former matrimonial home and the proceeds should be divided equally or unequally again, depending on the above factors.

Yasar manages a varied case load dealing with divorce, cohabitation matters, Children Act proceedings and injunctions. He advises clients across a wide range of private and family law and specialises in high net worth finance matters that include businesses and overseas assets.

If you are considering divorce and concerned about financial debt, please contact Yasar on 01254 272649 or by email: [email protected]

Enjoyed this? Read more from Woodcocks Haworth & Nuttall Solicitors

Latest news

1

Date revealed for opening of entries for Red Rose Awards 2026 Red Rose Awards 2025

Date revealed for opening of entries for Red Rose Awards 2026

14 Jul 2025

2

Northcote celebrates prestigious industry marketing award for the 25th anniversary of Culinary Festival Obsession Northcotes winning awards

Northcote celebrates prestigious industry marketing award for the 25th anniversary of Culinary Festival Obsession

14 Jul 2025

3

Applebridge take over first floor letting at Ackhurst Business Park in Chorley John Kiernan - Construction Director & Paul Troubridge - Project Director; from the Applebridge Family

Applebridge take over first floor letting at Ackhurst Business Park in Chorley

14 Jul 2025

4

Expanding Airframe Designs appoints new advisory board chairman David Roberts and Jerrod Hartley

Expanding Airframe Designs appoints new advisory board chairman

14 Jul 2025

5

Booths win gold at International Cheese and Dairy awards Cheese counter at Booths

Booths win gold at International Cheese and Dairy awards

14 Jul 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley College University Courses Building, Burnley, BB12 0AN

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

Shaping Preston's future by remembering its past
1750160034867.png.png
LBV Hub Networking
16 Jul 2025 - 16 Jul 2025

Shaping Preston's future by remembering its past

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:30

Chamber Summer BBQ
LBV Hub Social
17 Jul 2025 - 17 Jul 2025

Chamber Summer BBQ

The Borough, Dalton Square, Lancaster, LA1 1PP

17:30 - 20:00

Preston Tech Connection: Web3 is Dead. Or is It?
July Longer Banner.jpg.jpg
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Web3 is Dead. Or is It?

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

North West Business Expo 2025
https---cdn.evbuc.com-images-880456273-4862066883-1-original.20241022-105445.jpeg.jpg
LBV Hub Exhibitions
24 Oct 2025 - 24 Oct 2025

North West Business Expo 2025

Bolton Stadium Hotel, Bolton, BL6 6SF

09:00 - 15:00

Lancashire Business Day 2025
241122lbvlancashiredaylhp0647web
Networking
27 Nov 2025

Lancashire Business Day 2025

Burnley FC , Burnley, BB10 4BX

12:00 - 17:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin