What happens if you marry someone with debt?

Are you and your significant other thinking about a future together? It might seem like the wrong time to talk about something as unromantic and practical as money. But the truth is, it’s a very important time to do just that. If you or your partner is in debt, this could have knock-on effects for your life plans in all sorts of ways.

 

 

Whatever your goals in life, it will be much easier for the two of you to achieve them if you’re honest and open with one another. So if you or your partner has problems with debt, don’t panic. Here’s everything you need to know about how it could affect you both, and what you need to do.

Will I be responsible for my partner’s debts if we get married?

The short answer is no! If your partner has debts in their name alone – that is, not joint debts – then you will never be responsible for those debts. This is true even if they take out the debt after you get married.

However, if you take out any joint debts, both of you will be ‘jointly and severally liable’ for these. So if your partner stops making payments on the debt, the lender can chase you for it.

How could their debts affect me?

It might be harder to get a mortgage

People with debt problems often have a poor credit score. This is likely to be a problem if and when the two of you apply for a joint mortgage. It doesn’t mean you’ll never be able to get a mortgage together. But it does mean you’re likely to end up paying more.

You and your partner should discuss your options. Maybe you should put off buying a home for a while. That way your partner could deal with their debts first, and then work on rebuilding their credit score.

Or if you can afford it, maybe you could take on the mortgage alone. However, bear in mind that…

You might find it harder to get credit

Your partner’s debts shouldn’t affect your own credit score. However, if you have any joint credit agreements – or even a joint bank account – then your partner may be listed as a ‘financial associate’ on your credit report. This is the case whether you’re married or not. And it means that if you try to take out credit, the lender may take your partner’s credit history into account as well as your own. So you might only be able to get more expensive credit, or none at all.

If you find that this is making it very difficult for you to take out credit, one option might be to end your financial association for the time being. To do this, you’ll need close any joint accounts the two of you have. Then apply to the credit reference agencies for a Notice of Disassociation [link]. You can do this even if you’re married and/or living together, as long as you don’t have any joint accounts.

Of course, you might not be able to close your joint accounts. For example, you may have a joint mortgage, or a joint loan that isn’t yet paid off. In that case, the best way to improve your chance of getting credit is for the two of you to work on improving your credit scores.

Debt can be distressing

Most couples argue some of the time. But problem debt, and other money worries, can cause particular tension. This is true no matter your income, but if you’re on a tight budget it’s sure to be especially stressful. The effects of problem debt can include health issues such as stress, anxiety and depression, as well as more immediate trouble such as a visit from bailiffs. All these things can put you, and your relationship, under a lot of strain.

What happens to your partner’s debts if they die

When someone dies, any debts for which they were solely responsible must be paid from their estate. (Their ‘estate’ is any money or assets they left behind when they died.) So if your partner has debts when they pass away, you may not receive the entirety of anything they leave you in their will.

Is it a bad idea to marry somebody in debt?

At least 8 million people in the UK have debt problems. It’s not unusual. It can happen to anyone! And it’s nothing to be ashamed of. So the fact that your partner has debts – even if they’re struggling with them – doesn’t mean you need to break up with them, or to avoid getting married.

What it does mean you need is an honest, open conversation about how you’re going to deal with this problem together. It’s basically the best possible way to prepare for married life!

While you’re having these discussions, it might help to take a look at the information on our website about the different debt solutions that are available and how they work.

Whatever your debt problem, there’s a solution out there to help. Our advisers here at Financial Wellness Group are debt experts and great listeners. They can help you see a way forward. Click here to find out how to get in touch.