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Liability of credit card debt, tax outstanding

  • Newstartman
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17 Apr 12 #324494 by Newstartman
Topic started by Newstartman
Hello, Thank you in advance for advice here.

As context: Since separating I have run up a credit card debt and have some outstanding tax to pay (probably similar to many husbands)This is in large part due to me paying all the ongoing bills at the former marital home and for my new rental property. I pay off the monthly amount of one credit card that is in both our names but only my wife uses.

The card with the debt has been used to pay for things for myself but also for my 2 children and for example insurance for the car my wife drives (the car is in my name)

My question: as part of the asset split of a divorce is this credit card debt looked at as joint debt (as it has grown through expenditure on myself, my wife and 2 children since our separation) or am I solely liable?

As well, I owe some income tax and again this is in large part due to the fact I am paying every bill. Is the outstanding tax solely my responsibility or is it seen as being a shared debt? Thanks for replies

  • hadenoughnow
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21 Apr 12 #325613 by hadenoughnow
Reply from hadenoughnow
Your ability to pay bills etc should be based on your income net of tax. It is probably a good idea to pay the income tax asap because otherwise you will start racking up penalties.

It is not sensible to have a credit card that is available to your stbx to use - but as it is, I would imagine you would have little problem arguing it is joint debt.

It sounds like you and your stbx need to have a serious talk about how to live within your joint means.

Hadenoughnow

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