Debts and separation
Key facts
- Separating does not change who is legally responsible for a debt.
- A joint debt remains the responsibility of both named people until it is repaid, refinanced or moved into one name.
- A sole debt is normally the responsibility of the person named on the agreement, whatever it was spent on.
- Debts are part of financial disclosure and are set off against the assets when dividing everything.
- Free, confidential debt help is available from StepChange and MoneyHelper.
When people picture dividing their finances on separation, they usually think about splitting assets. But debts have to be divided too, and they can cause just as much worry. The important thing to understand early is that separating from your partner does not, by itself, change who a lender can chase for a debt.
This page explains who is responsible for debts after separation, the difference between joint and sole debts, how debts are handled in mediation, and where to find free help if the debts feel unmanageable. It sits within our guide to financial mediation. This is general information, not financial or legal advice.
Who is responsible for debts after separation?
Responsibility for a debt follows the credit agreement, not the relationship. If both of your names are on a debt, you are both liable for the whole amount, and that does not change when you separate. The lender can pursue either of you for the full balance, regardless of any private agreement you have made about who will pay.
This surprises many people. You might agree between yourselves that one person will take on a joint loan, but until the lender formally moves it into that person’s sole name, the other remains on the hook if payments are missed. That is why debts need to be dealt with properly, not just informally, as part of the settlement.
Joint debts and sole debts
It helps to separate debts into two types, because they are treated differently.
| Type of debt | Who is liable | Examples |
|---|---|---|
| Joint debt | Both named people, for the full amount | Joint mortgage, joint loan, joint overdraft, some joint credit agreements |
| Sole debt | The person named on the agreement | A credit card or loan in one name only, even if spent on the family |
| Guarantor debt | The borrower, and the guarantor if payments are missed | A loan where one person guaranteed another’s borrowing |
A debt in your sole name is normally yours alone, even if the money was spent on the household. Equally, a debt in your partner’s sole name is usually theirs, even if you benefited. What counts is whose name is on the agreement.
A note on joint accounts
With a joint overdraft or joint credit, each of you can be liable for the whole balance, not just half. If you are separating, it is worth contacting the lender early to discuss freezing or separating the account, so new spending does not add to a shared debt.
Disclosing debts in mediation
Debts form part of full and frank financial disclosure, just like assets. Both of you list what you owe: mortgages, loans, credit cards, overdrafts, car finance and any other borrowing, in joint or sole names, with statements to back it up. Being open about debts is as important as being open about assets, because the net figure, assets minus debts, is what you are really dividing.
Disclosing debts also means neither of you is caught out later by borrowing you did not know about. If a debt only comes to light after a settlement, it can cause real difficulty, so honesty at this stage protects both of you.
Dealing with joint debts in a settlement
Once debts are on the table, you can decide how to handle them as part of the overall split. Sometimes a joint debt is repaid from the sale of an asset, such as the family home. Sometimes one person takes on a joint debt in exchange for keeping more of an asset. Where one person is to take over a joint debt, the safest route is to have it refinanced into their sole name, so the other is genuinely released.
Whatever you agree is recorded in the memorandum of understanding and, where it forms part of the financial settlement, reflected in the consent order. Bear in mind that a consent order binds the two of you, but it cannot force a lender to release someone from a joint debt. Only the lender can do that, usually by refinancing.
Getting free debt help
If debts feel overwhelming, you do not have to face them alone, and you do not need to pay for advice. Free, confidential and non-judgemental help is available from StepChange and from MoneyHelper, which is backed by the government. They can help you understand your options, from budgeting to formal debt solutions, separately from the mediation about dividing your finances.
Sorting out problem debt early can also make the financial settlement easier, because both of you have a clearer and steadier picture to work from. Our financial disclosure checklist includes debts, so you can gather everything in one place before mediation begins.
Common types of debt and how they are treated
Different debts are treated differently, and the key is usually whose name is on the paperwork rather than who spent the money.
| Debt | How it is usually treated |
|---|---|
| Mortgage | A secured joint debt; both are liable until it is repaid, the home is sold, or it is refinanced into one name |
| Personal loan | Joint or sole depending on whose names are on the agreement |
| Credit cards | Usually the sole debt of the named cardholder, even if used for the family; an additional cardholder is not normally liable |
| Overdraft | On a joint account, each of you can be liable for the whole balance |
| Car finance (HP or PCP) | The debt of the person named on the agreement, and the car may belong to the finance company until the end |
| Student loan | An individual debt repaid through the tax system; it is not shared or divided on divorce |
| Tax and council tax arrears | The liability of the person assessed, though council tax on a jointly occupied home can be joint |
There is one further idea worth knowing. Where one person has run up debt recklessly or spent it entirely on themselves, the other may argue it should not reduce the pot they share. This is sometimes called an add-back, though courts apply it cautiously and only in clear cases.
Debts and the overall settlement
Debts are set against the assets to reach a net figure, and it is that net figure the section 25 factors are applied to. Most everyday debts run up for the family, such as the mortgage or a loan for the car, are simply part of the shared picture. The question of whether a debt is a shared, matrimonial one or belongs to one person alone can matter, in the same way as the split between matrimonial and non-matrimonial assets.
Where money is tight, the usual order of priority is to secure a home for any children first, then to deal fairly with the debts. How the home itself is handled is set out in our guide to the family home after separation.
Protecting yourself: credit files and joint accounts
A few practical steps can stop a shared debt growing while you sort things out. Contact lenders early to freeze or separate joint accounts and overdrafts, so new spending does not add to a joint balance. Keep paying at least the minimum on joint debts if you can, because missed payments harm both of your credit files.
You are also financially linked to anyone you hold a joint account or joint debt with, which can appear on your credit file as a financial association. Once all joint accounts are closed or moved into one name, you can ask the credit reference agencies for a notice of disassociation, so your finances are no longer tied to your ex-partner’s.
What if the debts are bigger than the assets?
Sometimes a couple separate owing more than they own, for example with a home in negative equity or large loans. In that situation there is no pot to divide, and the task becomes agreeing who will manage which debts, and how to keep a roof over any children. Free advice from StepChange, National Debtline or Citizens Advice can help you look at options such as budgeting, a debt management plan or, in some cases, formal solutions. Sorting this out alongside, but separately from, the financial mediation can make the whole process steadier.
Who pays the mortgage and bills in the meantime?
While you work things out, the everyday commitments still have to be met. On a joint mortgage you are both liable, so it is sensible to agree who pays what in the interim and to keep payments up, because arrears damage both of your credit records and can put the home at risk. If money is tight, most lenders would rather talk early about options than see payments stop.
The same goes for council tax, utilities and other household bills in joint names. Agreeing a temporary arrangement, even a rough one, keeps things stable until the settlement is finalised. None of this changes who ultimately owns or owes what, but it stops small problems growing while the bigger picture is sorted out.
Debts and the section 25 balance
When it comes to the final split, debts are not looked at in isolation. They are set against the assets and weighed with everything else under the section 25 factors, with the housing needs of any children coming first. A couple with modest assets and significant debts may find the settlement is really about who can shoulder which repayments, rather than dividing a surplus. Being open and realistic about this from the start usually leads to a steadier outcome.
Talking about debt without blame
Debt can be a sensitive subject, especially if one person feels the other ran it up. Mediation is a place to set that feeling aside enough to deal with the practical question of who is liable and how the debt will be handled. The mediator keeps the conversation balanced and focused on facts and figures, rather than on fault, which usually makes it easier to reach a workable plan.
Approaching debt openly also protects both of you. A clear, agreed plan for each debt, recorded in the memorandum and reflected in the consent order where relevant, leaves far less room for confusion or dispute later. It is almost always better to face the numbers together than to leave a shared debt unresolved.
When a couple divide their finances, debts are not dealt with in isolation. Under section 25 of the Matrimonial Causes Act 1973 the court weighs each person’s financial resources, needs and obligations, and liabilities such as loans and credit cards are part of that picture. Responsibility to a lender, however, follows the credit agreement itself. A consent order between the couple cannot by itself release either of them from a joint debt, because only the lender can do that, usually by refinancing it into one name.
Leah and Adam separated with a joint loan of £9,000 and a credit card in Adam’s sole name. Adam assumed that because he had spent most of the loan on his van, he would simply take it on, and that the card was Leah’s problem because she had used it for the family shop. In mediation the mediator explained that the joint loan made them both fully liable until it was refinanced, while the card, being in Adam’s name, was legally his. They agreed Adam would refinance the joint loan into his sole name so Leah was released, balanced by Leah keeping more of the savings. It was written into their consent order.
Frequently asked questions
Am I responsible for my ex’s debts after we separate?
Only if your name is on the agreement. Joint debts remain the responsibility of both of you until repaid or refinanced. A debt in your ex’s sole name is normally theirs alone, even if the money was spent on the family.
Does a consent order release me from a joint debt?
Not by itself. A consent order binds you and your ex, but it cannot force a lender to remove you from a joint debt. Only the lender can release you, usually by refinancing the debt into one name.
Do we have to disclose debts in mediation?
Yes. Debts are part of full and frank financial disclosure, alongside assets. The net figure, assets minus debts, is what you divide, so both of you list everything you owe with statements to back it up.
What happens to a joint overdraft when we separate?
Each of you can be liable for the whole balance. It is worth contacting the bank early to discuss freezing or separating the account, so further spending does not add to a shared debt.
Where can I get free debt advice?
Free, confidential debt help is available from StepChange and from MoneyHelper, which is government-backed. They can explain your options separately from the mediation about dividing your finances.
Are student loans divided on divorce?
No. A student loan is an individual debt repaid through the tax system based on income. It stays with the person who took it out and is not shared or divided on separation.
How do I remove a financial link to my ex on my credit file?
Once you have no joint accounts or joint debts left, you can ask the credit reference agencies for a notice of disassociation. This removes the financial association, so your credit file is no longer tied to your ex-partner’s.
What happens if we owe more than we own?
If the debts are larger than the assets, there is no pot to share, and the focus turns to who can manage which debts and how to house any children. Free debt advice can help you weigh the options.
Sources
- MoneyHelper, Dealing with debt when you separate or divorce, moneyhelper.org.uk. Accessed 9 July 2026.
- StepChange Debt Charity, Free debt advice, stepchange.org. Accessed 9 July 2026.
- GOV.UK, Options for dealing with your debts, gov.uk. Accessed 9 July 2026.
- Matrimonial Causes Act 1973, section 25 (matters to which the court is to have regard), legislation.gov.uk. Accessed 9 July 2026.