My husband and I have been seperated for more than 2 years. He has a new partner. We took several personal loans in my name to prop up my ailing business. We have another joint business, a limited company that is still struggling. Mine has a very large overdraft and 2 loans as well. When I divorce him, does he have half of my debts? If so, I assume I need a solicitor. we don't have much money and can't really afford one, so what to do? Also, my credit record is excellent but he doesn't have one. Thanks.
The courts seem happy to divvy up the assets ... but a little less consistent when it comes to the debts.
The issue is that contractually the debts belong to one party or the other (whosever name they are in), or in your case the debts could even belong to your company and not to you individually (not quite clear from what you said).
Point is that conceptually.....the courts should be looking to divide the net assets from the marriage.
i.e. add up all assets and take away all debts.
Then share what is left.
If all that there is to share are some debts....then in theory UK divorce law should share those.
But they seem sometimes reluctant to re-assign debts.
It all hinges on making an arguement to the court as to whether the debts are joint debts from the marriage or individual debts.
The timing of when the debts were incurred is relevant (before, during or after marriage). And the purpose to which the loans were used (house extension, business venture or new girlfriends bood job).
Debts incurred during marriage to invest in a business....I would say are joint matrimonial debts.
Thanks very much for the advice. Will I need a solicitor to deal with the splitting of the debts? My husband and I are still working together and on very good terms so we can work it out together, but i'm not sure how to go about that legally.
The company debts belong to my sole trader company so I am legally responsible for paying them back, though he was the one who pushed me into taking them in the first place, tho i know that's not relevant.
We do not own any property. The only assets are the stock and company machines which we will continue to use.
The debts are really from both of us and he is happy to share them, so I guess that's quite simple.