There are many things you know you’ll end up sharing with a partner – children, friends and belongings. But what about unpaid overdrafts? A bad credit score? Joint debts?
Those who have separated from a partner may not realise how closely tied to each other they still are- even if they’ve both moved on emotionally.
Debt Advice Foundation statistics show that 17% of people blamed a relationship breakdown or divorce as the cause of their financial problems, making it the second highest cause of financial impairment after job loss.
The most urgent issue after a separation, particularly if it was acrimonious, is any joint current or savings accounts you may have together. Anyone named on the account is perfectly entitled to remove any balance plus any agreed overdraft amount, without the say so of the other and you will be just as responsible for paying it back as they are.
Loans and overdrafts work in exactly the same way, with both parties being jointly liable for the whole debt. This could become extraordinarily difficult if they then disappear with no forwarding address, leaving you in the lurch.
One thing you may not think about when you and your partner decide to buy a sofa on credit or get a house together is what happens when you split up, and who will have to pay for what.
Even the split wasn’t nasty, your ex can still cause you issues. Any product in both your names links you financially to that person on your credit report, which can be accessed by anyone you want to take credit out with- like an estate agents if you try and rent a new place.