i am in an iva but my wife is not after expenses the money left is taken by the iva what i would like to know is my wife intitled to half the surplus her pension is used in the expenses but she is not in the iva
It's usually acceptable to have a 'partners allowance' that is the same proportion of the joint disposable income, that the partner has of all the income.
So, if you bring in 2/3 of the income it would be reasonable for your partner to have an allowance of 1/3 of the overall disposable income.
It depends on how the disposable income has been calculated -- some firms, notably Payplan, use household income to arrive at disposable income. This effectively, means that the solvent spouse is paying towards the insolvent spouse's debt.
However, the 'I' in 'IVA' stands for 'Individual' ---- the arrangement should be limited to dealing with the individual's debt and based on that individuals income alone. In this instance allowable expenses are apportioned between partners, so each has his or her pro rata share. The simplest example is if partners each earn roughly the same then allowances are 50/50.
Indeed the finances of the solvent spouse are the business only of that spouse and need not be divulged at all, in which case a 50/50 split of allowances is usually assumed. The solvent spouse's specific spending is not usually factored into the IVA either.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
