Most people walk into a divorce worried about the house, the savings, or the pensions. Far fewer think about the credit cards, the car finance, or that old personal loan. Yet in my years working with solicitors and divorcing clients, dividing debt in divorce sparks just as many rows as dividing assets.
Often more, Debt follows you. It affects your credit file, your borrowing power, and your fresh start. That is why talking to an experienced family law solicitor early on can save you years of money worries later.
Here is what you need to know, minus the legal jargon.
Matrimonial Debt vs. Personal Debt
Before any debt is divided, it is sorted into types. In England and Wales, the courts look at two broad groups:
- Matrimonial debt: money borrowed during the marriage for the family. Think joint credit cards, the mortgage, car finance, or a loan for home repairs.
- Personal debt: what each spouse brought into the marriage, or borrowing tied to one person’s own choices. A loan taken out in secret is a common example.
It sounds simple on paper. In real life, the lines blur fast. A credit card in one name but used for food and school uniforms? Likely matrimonial. A gambling debt run up quietly by one partner? A judge may treat that very differently.
This is where a skilled divorce solicitor earns their keep. Showing how and why a debt arose can shift thousands of pounds from your side of the ledger to the other.
How the Courts Treat Debt in a Financial Settlement
There is no automatic 50/50 rule for debt in England and Wales. Instead, debts are weighed up with the assets as part of the whole financial settlement. Fairness is the guiding rule. The court looks at factors set out in the Matrimonial Causes Act 1973. These include each spouse’s income, their needs, the length of the marriage, and the lifestyle the family enjoyed.
In practice, one spouse may take on more of the debt simply because they earn more. The same applies if they keep the larger asset. Joint debts are usually shared. Debts run up rashly, or for one person’s sole gain, may stay with the spouse who created them.
I have seen clients assume “fair” means “equal” and get a nasty shock. It does not. Knowing how a court would view your debts should be step one in any settlement plan.
The Trap Nobody Warns You About
Here is the part that surprises almost everyone. A financial order binds you and your ex. It does not bind your lenders. If a joint loan is given to your former spouse and they stop paying, the lender can still chase you for the full amount. Your credit file takes the hit too. Joint borrowing also creates a financial link on your credit record. That link can drag your score down long after the divorce.
Four steps that genuinely help:
- Check both credit files before talks begin, so no debt hides in the shadows.
- Close or freeze joint accounts as soon as you separate.
- Move joint debts, the mortgage above all, into the right spouse’s sole name where you can.
- Ask the credit agencies for a notice of disassociation once joint accounts are closed. This breaks the financial link with your ex.
These are not dramatic moves. But they protect the thing that matters most after divorce: your power to rebuild.
Don’t Face This Alone
Dividing debt in divorce is rarely about the maths. It is about sorting the debts, timing, and guarding your future credit. Couples who rush this often spend years fixing problems that an hour of sound legal advice would have stopped. Whether you face a pile of joint borrowing or just want a clean break, get clear answers before you sign anything.
If divorce is on your horizon, speak to a family solicitor who deals with financial settlements every day. Book a confidential chat today. The choices you make now about marital debt will follow you long after the final order is granted. A fair settlement is not luck. It is preparation.
