Divorce and Debts

When looking at the question of divorce and debts the court cannot Order the payment of debts to unsecured third parties as part of any financial Order in divorce proceedings.

When considering either party's assets the court will take into account the debts that party has. Where any Order is silent on the issue then the parties remain jointly for joint debts and individually liable for debts in their own names.

Not all debts are treated the same. Debts which there is a contractual obligation to repay are known as "hard" debts. Debts where there is only a moral obligation to repay are known as "soft" debts. Soft debts will usually be loans from family members.

A hard debt will be regarded by the Court as due and payable. Soft debts are not treated in the same way and it’s possible may be ignored altogether. Much will depend on the evidence given on the issue and how the judge on the day decides to treat the debt.

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