As couples find out while undergoing their divorce process in the UK, not just assets but their cost also needs to be divided with your better-half if you are thinking of parting ways. It is always better to work out these matters yourselves with professional help, if necessary, than to leave it to the discretion of the law. The government’s appraisal and decisions on the basis of it might turn out to be disappointing for both of you, so it is better to join forces over this issue at least, even if you heartily hate each other.

The Importance of Dividing Debts

Why is it important to divide debts between the two of you?

• There are certain formalities that are a part of any divorce. One such important step is the declaration of assets by both parties. The court will look into a form duly filled in by both of you revealing the details of your income, investments, loans, shares and property rights and crosscheck it. On the basis of the findings, it would be decided who is to pay how much after the split. If you hide any income or loan despite knowing about it, this is counted as a punishable offence in the eyes of the law.



• If you want to go for a separation agreement and make things easier for yourselves, you have to go in for the economic assessment again – either on your own – or with professional help. Either way, you have to divide debts between the two of you if you really want to make it easier for yourselves.



• In case you have managed to get the divorce over and done with without declaring your debts properly, and with the lion’s share of repayments falling on your partner, chances are there would be a nasty shock in store for you. No one likes an unfair deal, and no matter how cooperative your partner has been so far, you will not be allowed to get away with this. If you are the one who has been short-changed, then it is bad enough that you had not been careful, but you have to report matters before they take a worse turn.



• If you are hiding your loans, think twice. Just like there are spies to find out the real assets of the rich, there are private investigators who can find out the true condition of the not-so-rich as well. Surely, facing such humiliation from your spouse is worse than coming clean with your debts.

• Any loans that you have taken together need to be disclosed.



• If your house is mortgaged, you will need to share that debt.



• The same rule applies to any land or second property that you have either bought on loan or mortgaged.



• If you have taken a business loan from which you are both benefiting.



• Personal loans for assets that both of you are using. In the case of cars, maintenance will be added to this.



• Private debts shared by you, or from which you have both benefited.



• Outstanding amounts on joint credit or debit cards.



• Outstanding instalments for leisure options that you both enjoy, for example, club memberships.

• Do not go in for a heavy investment when divorce is coming up.



• Separate your accounts.



• Stop joint credit cards that your partner can access.



• Do not buy joint property.



• If you have enough assets, it is better to have a prenuptial agreement too.

• Try to negotiate a lighter deal with your bank or lender. Point out your real situation; it helps.



• Try to utilise your existing assets to raise funds, for example, put property on rent.



• Try to increase your income.



• Take the help of experts and invest wisely instead of hoarding your savings.