Dealing with problem debt after separation

Whenever you use any form of credit – such as an overdraft, credit card, mobile phone contract, store account, loan, or mortgage – the details are recorded on your credit report, which gives you a credit score..

Your credit score can be affected if, for example, you miss a repayment, go over your credit limit, or take out new credit. 

A low credit score could affect your ability to apply for credit, including mortgages, and to access other services such as mobile phone contracts in your own name. It can also mean missing out on cheaper deals.

Your personal credit score could change because of separation, particularly if your partner has taken out credit in your name or if you’ve had a joint bank or building society account, loan or mortgage – because your credit reports will be linked.

If you’ve got debts on joint finances, tell your creditors about your situation. You might have to close some accounts. Remember, you’ll still be liable to pay off any outstanding amounts, but closing accounts should stop the debts increasing.

If you can, talk with your partner about how you want to deal with your finances. If you can’t agree, using mediation could help. You can find out more about mediation from Citizens AdviceOpens in a new window

If you’ve got a joint credit or store card, you can either ask your ex-partner to give you the card back, or contact the card company and find out what you need to do to block the card or remove your ex-partner from your account. Check with your credit card and store card lenders to find out if your partner is listed as an authorised cardholder.

You can use your credit report to check if there are any debts attached to your name. By law, all Credit Reference Agencies (CRAs) have to provide you with a copy of your credit report for free. You can ask a CRA to update your credit report after all joint accounts have been closed. 

If you think your partner might use your details in future, the CRA can add a password NOC (notice of correction) to your account. You’ll need to use this password to make any new credit applications.

If you’re separating from your partner and owe money, there are things you can do.

If you and your ex-partner have a joint bank account, try to agree with them what you’d like to do with it. It’s a good idea to contact your bank or building society as soon as you know you’ll be separating.

Here are some things to consider:

Change the way the account has been set up, so that both of you have to agree to any changes, such as money being taken out or overdraft limits being increased.

Make sure that your wages or benefits go into an account only in your name in future.

Ask the bank to suspend online and telephone banking on any joint account.

Work out how you’ll pay bills that are being paid from your joint account. It might be that you agree to continue paying certain bills – for example, your rent or mortgage.

You can freeze the account if you’re worried that your ex-partner will withdraw money.  One of you can ask the bank to freeze an account, but both of you usually have to sign a letter to say you want it ‘un-frozen’. Consider any problems you might face if Direct Debits or standing orders come out of the account, or if you make regular payments from it – for example, your mortgage or rent, bills or food shopping.

Close the account, if you don’t have much money in it or you won’t use it in the future. Both of you have to agree – usually in writing – to close a joint account. You won’t be able to do this until any overdraft has been paid off.

If you have a low credit score that’s stopping you from opening a new account, you might be able to able to get a fee-free basic bank account. 

If you’re requesting changes to your mortgage, speak to your lender to see what they can do to help you. If your mortgage is in your joint names you’ll need to both agree to any changes. Your mortgage company will need to check whether the changes are affordable and meet other legal requirements before agreeing to them.

If you need to, you can ask your mortgage lender to send statements with the balance and payment information to another address.

If you live in rented accommodation, you should tell your landlord about your changed situation. 

If you live in England or Wales – if the tenancy agreement is in your ex-partner’s name, and they move out, you might be able to continue paying the rent (to avoid arrears and the threat of eviction). But it would depend on the type of tenancy agreement you have, and whether your landlord is a private or social sector landlord.

If you live in Northern Ireland – if the tenancy agreement is in your ex-partner’s name, they’re liable to continue paying the rent.

What if they’ve moved out and are no longer paying the rent – while you’re still married or in a civil partnership? Then you might have the right to live in the property and pay rent.

Talk to your landlord about getting your name onto the tenancy agreement as it will give you more protection.

If you live in Scotland – if the tenancy agreement is in your ex-partner’s name, you have the right to live in the home as if you were the tenant with your children (even if they’re adults).

Your ex-partner can’t end the tenancy without your written agreement.

If you, or your ex-partner, are moving out of as shared home, take meter readings for gas and electricity – so the person moving out isn’t charged for energy they haven’t used.

Taking over an account that was in both you and your ex-partner’s name should be easy. You can usually do this online or over the phone. Remember, you and your ex-partner will be responsible for paying any money you owe up to that point.

If you want to take over a bill in your ex-partner’s name, the old account will have to be closed and a new one set up.

You might be entitled to benefits for rent if a partner moves out. Find out more in our guide Your rights to your rented home during divorce or dissolution.

If you’re living on a low income or have had an income shock, use our Benefits Calculator to quickly find out what you could be entitled to.