How to deal with problem debt after separation

There are lots of things to consider when sorting out your money after a separation. If you’re struggling to pay all your debts, it’s important to prioritise them. What you need to pay first are known as ‘priority’ debts. These have more serious consequences if you don’t pay them, such as being taken to court or losing your home. These include your:

• rent or mortgage
• Council Tax (Rates in Northern Ireland)
• gas and electricity bills.
• child maintenance 
• court fines
• car finance (if you have one)
• secured loans 
• finance for essential items 
• TV Licence.

Find out more about how to prioritise your debts.

When you’ve arranged to pay your priority debts, you need to work out how much you can pay towards your other debts. These could include money you owe on your:

• credit or store cards
• bank loans
• hire purchase and catalogue debt
• overdraft 
• personal loan
• water bill
• store or catalogue payments
• loans from friends and family.

To help you work out what you can afford to pay, try our free and easy-to-use Budget planner.

With any joint debts you have, such as a joint bank loan, overdraft or mortgage, you're usually both liable to repay the whole amount.

That means if your ex-partner doesn’t pay their share, the bank or building society might ask you to make all the payments. Contact them to tell them you’ve split up and see if you can:

• put some restrictions on the account so your ex-partner can’t run up further debts, or
• reach an agreement so they accept lower payments if you can’t repay in full.

If you have a joint loan or mortgage with your ex-partner and the bank won’t let you separate the loan – try to agree between you how you’ll repay it.

Both of you are liable to pay off any joint loans you have. If one or both of you doesn’t keep up the payments, it could affect both your credit ratings and your ability to borrow in the future. You might want to:

• agree with your ex-partner that you’ll continue to make payments from a joint account
• sort out an arrangement so one of you agrees to pay the bank or loan company but gets a contribution from the other – it’s best for them to set up a standing order for payments so you know you’ll get the money
• pay off your joint loan between you as soon possible, providing you can both afford to.

Find out more, including working out a repayment plan, in our section on Managing credit well.

Sometimes, couples who are splitting up make arrangements for their finances with the best of intentions, that just don’t last. It could be because your, or their, money situation has changed or perhaps communication has broken down between you. If that’s happened, try to keep the bank or lender informed. If you don’t think you’re being treated fairly by your bank or lender you can complain to the Financial Ombudsman ServiceOpens in a new window

If your ex-partner is running up debts in your name, this is financial abuse. If you’re in this situation, there’s help and support out there. Find out more in our guide Financial abuse: spotting the signs and leaving safely.