I have been separated from my wife for 18 months. 3 years ago my wife took out an IVA (in her name only) to cover family debt and some debt that she had before we got together. Since separating my wife;s IVA payments have been increased has her benefits and part time earnings have increased. Although I want to help my wife financially because the IVA was caused by our joint debts, we are unable to agree on a settlement. My wife advises that I am legally responsible for the outstanding debt, and she wants me to make an offer of settlement. However I cannot afford this and do not believe I am legally responsible if the IVA is in her name. Can you advise whether or not I have a legal responsibility for this, which would be upheld in a divorce settlement.
I can only assume this would be for a judge to determine as part of a divorce settlement. Legally you have no liability to the actual debts unless you signed for them. However a judge may order you make a contribution towards the debts and that money would then likely be captured by her IVA.
You need to speak with a solicitor but perhaps if you are in a position to make an offer it could be of benefit in the long term. If your ex agrees to forego any other claim against you in return for clearing her IVA it may be a price worth paying.
Matrimonial proceedings apart you are only responsible for any joint debt, taken out in both your names. Note that you can be pursued for the whole debt in this case, not just half.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Unless you are handling the divorce yourselves and the CSA is not involved it would be advisable to seek legal advice or go down the mediation route.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
Hi Peter although the IVA is in her name the actual debts themselves might be joint liabilities in which case as the others say you are also liable. If they are her sole debts then their should be no issue but that doesn't sound like the case here. If joint you may want to think about how much the joint creditors are expecting to receive from her IVA and what the shortfall will be that creditors may then look to you to pay.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Lisa Thomas
Hi Peter although the IVA is in her name the actual debts themselves might be joint liabilities in which case as the others say you are also liable. If they are her sole debts then their should be no issue but that doesn't sound like the case here. If joint you may want to think about how much the joint creditors are expecting to receive from her IVA and what the shortfall will be that creditors may then look to you to pay.
Hi Lisa, Thank you for your response. To clarify the debts in the IVA were all formally in my wife's sole name. However the debts occurred buying goods and services for the joint benefit of me and my family. Will this make a difference?
Regards Peter
Last edited by Peter.07 on Thu Jul 02, 2015 6:17 pm, edited 1 time in total.
A judge in matrimonial proceeding might consider that you have e responsibility to help pay for goods from which you benefited --- but that is a whole different ball game which you really need to take legal advice on.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi Peter - Yes that depends on whether you go into matrimonial proceedingss and a judge awards in her favour. I presume if sh'es in an IVA she can't afford to hire a lawyer in respect of any proceedings. Do you know how much the 'joint' debts are? From her point of view, although morally the goods/services were joint, the debts are actually in her sole name and included in her IVA so as her IVA has already been agreed and is in place I'm not sure why she's would be too concerned about it. If you start to make a contribution it could be construed as an admission to the liability...
