Here’s the uncomfortable truth to digest: debt doesn’t disappear when love does. As divorce lawyers, we see it too often; separating couples blindsided—not by the breakup—but by the balance sheet. Research by StepChange shows that over half of the people in the UK have experienced problems with debt, and nearly 60% of those in debt feel judged or assume others see them as irresponsible. Dealing with the emotional fallout from a divorce is burdensome enough without feelings of shame around your financial circumstances or those of your spouse. Our divorce lawyers can help you take a practical approach and work out how any debt should be dealt with to enable you to move forward and move on.

The Questions You Should Be Asking

During a divorce, debt is treated as part of the overall financial picture under the principles set out in the Matrimonial Causes Act 1973. The court looks at fairness—not just whose name appears on the paperwork.

The key questions are:

• What debts exist? (All of them—credit cards, loans, overdrafts, tax liabilities);
• What were they used for? – Family living costs? A business? Gambling?
• Can they realistically be repaid from cash or other assets we have?
• How can we protect both parties’ credit ratings going forward?

It’s always difficult when a marriage is coming to an end, but it’s important to try to adopt a sensible and pragmatic approach.

Joint debt

In the UK, lenders care about who signed the agreement, not what your divorce settlement says. If you have a joint loan, joint credit card, or joint mortgage, you are jointly and severally liable. That means the lender can chase either of you for 100% of the debt. Your spouse missing payments won’t just damage their credit score; it can damage yours, too.

The Hidden Debt Trap

It’s crucial that any financial settlement properly addresses debt, how it is to be repaid, and by whom. It’s very easy to fall into a hidden debt trap if a divorce settlement isn’t fully considered and properly negotiated. For example, agreeing that one party can remain in the former family home, but not properly recording and implementing this in terms of the mortgage, could mean that missed mortgage payments adversely affect both parties’ credit rating.

. Until a joint debt is refinanced into one sole name or paid off, the financial tie remains. Divorce doesn’t automatically sever financial liability.

Credit Cards & Financial Abuse

In many cases, one spouse controls all the finances. Credit cards are taken out; overdrafts increase, and the other spouse does not know the true extent of the borrowing.

If debt has been recklessly or deliberately incurred, it can be relevant in negotiations. However, proving it isn’t always straightforward. This is why an early exchange of full and frank financial disclosure matters.  Obtaining copies of bank statements, credit card statements, and up-to-date balance information will give you a clear picture of what you are dealing with, and together with your divorce lawyer, you can start to think about how best to address it.

Practical Steps During Divorce

If you’re separating and/or thinking about commencing divorce proceedings, you should:

• Obtain your credit report immediately.
• Review your joint credit facilities.
• Agree on interim arrangements for the mortgage and bills in writing;
• Deal with any correspondence from lenders; and
• Get legal advice before agreeing on who “takes on” any debt.

And if you’re negotiating a settlement, don’t just focus on who keeps the assets – you also need to consider whether the future debt structure is workable. An unrealistic agreement benefits no one.

The Emotional Cost of Financial Denial

Getting divorced is incredibly stressful, and debt adds another layer of fear—fear of insolvency, fear of losing the house, fear of starting over at zero.

But here’s the empowering part: debt is a problem you can quantify. And what you can quantify, you can plan for. Avoidance is what causes long-term damage.

A Final Thought

Debt doesn’t care about blame – it cares about liability. During a divorce, clarity is protection.

This Debt Awareness Week, if you’re separating or thinking about it, don’t just ask, “What am I entitled to?” Ask: “What am I responsible for?” Because in divorce, the fine print matters just as much as the feelings.