Separation rarely prevents either spouse from taking on debts or loans during divorce in their own name. However, that does not mean every new debt will be accepted without question when the finances are settled.
Can my spouse borrow without asking me?
There is no rule or law requiring someone to obtain their spouse’s permission before applying for a personal loan or credit card in their sole name. Starting divorce proceedings does not automatically freeze either person’s finances, although an existing court order or undertaking may restrict what they can do.
The important questions are how the borrowing is arranged and what the money is for. A modest loan to secure somewhere to live differs greatly from substantial borrowing for a risky investment.
Will I be responsible for a loan in my spouse’s name?
Marriage does not make someone liable for a loan taken out solely by their spouse, and a lender cannot ordinarily require the other party to repay it simply because they are married. However, debt in one spouse’s name may still affect the resources available to meet the family’s needs, although that does not turn the other spouse into a borrower under the credit agreement.
The position changes if you signed as a joint borrower or agreed to guarantee repayment. A guarantee can expose you to liability even though you did not receive the money. For example, a loan used to meet necessary household expenditure might need to be addressed as part of the settlement even though only one spouse owes the lender.
What if the borrowing is joint?
Joint borrowing needs prompt attention because each borrower will usually be liable for the whole outstanding balance. An agreement between you to pay half each does not normally restrict the lender’s rights to pursue both parties for the outstanding debt. For example, suppose your spouse continues using an authorised overdraft on a joint account after moving out. Depending on the account terms, you could remain responsible for the resulting balance even if none of the spending benefited you.
An account with two credit cards is often held in one person’s name, with the other person acting as an additional cardholder. The main account holder will generally be responsible for authorised spending on both cards.
Could my spouse’s borrowing affect my credit record?
A financial association with another party can arise through joint credit arrangements, and lenders may take an associate’s financial position into account when assessing an application. Missed payments on a joint loan can affect both borrowers, and contrary to popular belief moving out of the family home does not remove a spouse’s name from the mortgage or end their responsibility for repayments.
It is sensible to check your credit reports after separation and query anything you do not recognise. Where the financial connection has ended, ask the credit reference agencies whether you can obtain a financial disassociation; divorce alone does not necessarily remove the link. If you discover borrowing in your name which you did not authorise, contact the lender and obtain advice.
Can my spouse borrow against the family home?
Where both spouses are registered owners, one cannot usually grant a new mortgage over the whole property without the other’s consent. However, certain borrowing facilities may allow further borrowing under terms already agreed.
If the property is registered solely in your spouse’s name, do not assume that being married gives you an automatic veto over a new charge.
What if the debts are being run up deliberately?
Discovering a large new loan or watching savings disappear can be particularly worrying when your future housing depends on what remains. The court may take account of reckless spending that benefits only your spouse, although it will not adjust the settlement to make up for every purchase you question or investment that goes wrong. You will need to explain what has happened and why it should affect the financial outcome.
A general fear that your spouse might borrow more is different from a message saying they intend to secure a loan against the family home next week.
Are loans from relatives treated differently?
Family lending can be difficult to assess because arrangements are often informal. Money may have been given without interest, and repayment may never have been discussed. The court needs to separate an actual debt from a gift, and may also need to examine whether a genuine family debt is realistically expected to be enforced.
What happened in the case of TP v OP?
In TP v OP & Anor [2026] EWHC 1179 (Fam), the wife’s brother asserted she owed him £3.5 million, secured against the former matrimonial home. The husband disputed the debt and sought to set aside the charge.
This was not a new loan taken out during divorce as the underlying advances predated the marriage. The brother had acquired the debt through an agreement with the wife’s mother, and the charge was created during the financial proceedings.
After examining the evidence, the court upheld the debt and refused to set aside the mortgage. It found that the charge had not been granted to defeat the husband’s financial claim. Removing it would not change the financial relief available because the genuine debt would still have to be taken into account.
What can I do now?
Contact joint lenders if you are concerned about further borrowing and ask what restrictions are available. With a joint current account, this may include changing the instructions or freezing the account. If you do this, you should ensure you make arrangements for essential payments such as the mortgage or rent at the same time.
If there is evidence of an imminent attempt to undermine your financial claim, an urgent court application may need to be considered.
Your spouse taking on debt during divorce does not automatically mean you must share the responsibility, but it can affect the money available for your settlement. Understanding why the money was borrowed and checking any joint commitments can help you protect your position.