Whether it's student loans, credit card debt, or a mortgage, many people enter a marriage with debt. In the UK, getting married does not directly affect your loan debts. However, there are some factors that could indirectly impact your loans, such as changes in income and credit history.
According to figures, around 10% of UK adults are in debt, with an average debt of £8,000 per person. With such a significant portion of the population carrying debt, many people wonder how their loan debts will be affected when they get married.
This article aims to address common questions about debts and marriage, including whether spouses are responsible for each other's debts, how getting married can affect credit scores and loan eligibility, and what happens to loan debts in the event of divorce.
Will My Partner Be Responsible for My Loan Debts After We Get Married?
No, your partner will not be responsible for your loan debts at all. Each individual is responsible for their own debts, regardless of their marital status. The only exception is if your spouse has also co-signed on the loan agreement.
Will My Loan Debts Affect My Spouse’s Credit Score After We Get Married?
If you have a joint account or a joint loan such as a mortgage, both parties are equally responsible for the debt, and missed payments can negatively impact both credit scores. However, if you have kept your accounts and loans separate then your credit score will not be affected. (Source: Harpsey)
How Does Getting Married Affect My Ability to Apply for Loans or Credit in the Future?
While marriage does not have a direct impact on your ability to apply for loans or credit, it does change your recorded income and credit history may affect your eligibility for certain types of loans or credit.
If your spouse has a poor credit history, this could make it more difficult for you to obtain credit together, but you should be fine if you have your own account and did not co-sign.
How Can I Protect My Assets From My Spouse’s Loan Debts After We Get Married?
Assets owned by one spouse before marriage are generally considered separate property and are not included in the division of assets during divorce, meaning your current assets will not be affected. (Source: Divorce Bob)
However, if new assets are acquired during the marriage, they may be considered joint assets and can be divided during divorce. To protect assets from a spouse's loan debts, it is important to keep assets separate and consider seeking professional advice on protecting assets. There are many ways to do this, such as setting up a prenuptial agreement or establishing a trust.
Will My Loan Debts Be Included in Our Joint Assets if We Get Divorced?
This is possible. In the UK, divorce settlements involve dividing assets and debts acquired during the marriage. This will mean that if you acquired any debt during the marriage it may be considered a joint liability and could be divided between both parties in a divorce. However, this depends on the specific circumstances of your hypothetical divorce.
How Can Marriage Affect the Repayment of Student Loans?
If both spouses have student loans, their combined incomes may affect their eligibility for certain repayment plans that hinge on your salary being above or below certain thresholds. These plans calculate monthly repayments based on the combined income of the borrower and their spouse.
Can I Get a Mortgage if My Partner Has Bad Credit?
If you are applying for a mortgage together, then both spouses' credit histories and loan debts will be taken into account. This means that one partner’s bad credit score will reduce the couple's ability to get a joint mortgage. However, if only the spouse with a good credit score applies, they will not be impacted by their partner’s bad credit score.
Original Source of the original story >> How Marriage Affects Debt Levels
