Trust deeds, joint debts and your partner

A shared balance is not automatically split in half

Where liability is joint and several, a creditor can seek the outstanding debt from the other borrower. A trust deed entered by one person does not simply reduce the other person’s responsibility to half.

List joint accounts clearly and ask the trustee to explain the treatment of each one. The position needs individual confirmation, particularly where someone else will continue making payments.

Your partner’s own debts

Living together does not itself make every debt a shared liability. Separate accounts, joint borrowing and guarantees need to be distinguished.

Prepare a list showing whose name is on each agreement. If ownership or liability is unclear, bring the paperwork rather than making assumptions from who normally makes the payment.

Household budgets

A trustee may need household information to assess a fair share of expenses. Providing income information is not the same as a partner personally entering your trust deed.

Ask how shared rent, mortgage, utilities, childcare and other costs have been allocated. If the other person is also repaying debts, explain that rather than assuming their entire income is available for household bills.

Jointly owned property

The treatment of your interest in a property can affect the household even where the other owner is not in a trust deed. Both owners should understand valuations, payment proposals and possible sale consequences.

Read the home and assets guide and obtain advice before relying on a verbal assurance that “only your share” is involved.

If both people need help

Do not assume that two similar budgets call for identical solutions. Ask an independent adviser to assess each person and the household together. A comparison with Scottish alternatives may lead to different recommendations.

If a relationship has ended, tell the adviser about any disputed payments, ownership issues or inability to obtain documents. Avoid signing a proposal built on contributions from another person that have not actually been agreed.

Questions to take to advice

Ask what each borrower will remain liable for, whether creditors can contact the other person, how the budget is shared and how any property arrangement affects both owners. Keep the answers with the proposal so neither person relies on an incomplete explanation.