Who Pays the Bills When Getting Divorced?

Separation and divorce can be a complex process involving financial obligations and responsibilities. One of these obligations is the payment of bills.

Couples will have their own financial arrangements based on their circumstances. These can be formal agreements, such as signing loan documents together, or informal understandings that seemed fair and practical at the time they were made. Your separation and divorce may well disrupt some of these everyday financial arrangements. It can lead to uncertainty and stress if one party decides to then stop making payments.

Our team of divorce lawyers in Milton Keynes are here to guide you through the entire divorce process, helping to add clarity to your changing circumstances, including your financial arrangements. In the meantime, the following article provides a useful overview of how the bills continue to be paid when you are separated.

If your ex decides to stop contributing to household bills, there are a number of things that can be done to help address the situation. It may be possible to negotiate an interim financial arrangement in the short-term, either using mediation or solicitor-led discussions. If this approach is not successful, an application can be made to the court who may order the non-paying spouse to contribute financially until a final financial settlement is reached.

Both you and your ex will remain legally responsible for jointly held financial obligations, such as a mortgage or utility accounts. Missed payments could affect your credit rating, so seeking early legal advice is crucial to understand your options and secure financial stability during the divorce process.

It is essential to understand that separation or divorce does not release either party from their pre-existing financial obligations, whether these relate to payment of the mortgage or the utility bills.  For instance, the person responsible for the mortgage remains so, even if they move out. This responsibility ends only when alternative arrangements are agreed upon, often with the mortgage provider’s consent. This might involve one party buying out the other or selling the property to divide the proceeds for new households.

If the arrangements involved both parties contributing towards the bills, they should both continue to do so until new agreements are reached.

If one party remains living at the family home, until financial matters are agreed, and the other moves out, the question will be whether the party residing at the family home can afford to take on responsibility for the mortgage and household bills, and whether the party who has moved out has enough resources to cover these bills, as well as their own alternative housing costs.  This will be an interim position only, as the goal of a divorce settlement is to separate each party’s finances, ensuring they can lead separate lives with the resources they need.

In the case of joint debts, where both parties are equally responsible, it is essential to understand that creditors may pursue either party for payment. To protect your credit rating, consider speaking to the creditor and explaining the situation. You may be able to negotiate a temporary payment plan or request a ‘financial association disassociation’ to separate your credit records from your ex-partner’s.

If possible, you can try and talk to your ex-partner to understand their reasons for not paying. Sometimes, a simple conversation can resolve the issue and together you can come up with a short term arrangement to manage the finances until there is a formal financial agreement between you.

If this is not possible, mediation involves a neutral third party who can help facilitate discussions between you and your ex-partner. They can help find a mutually workable solution to the issue of unpaid bills.

If your ex-partner continues to neglect their financial responsibilities, you may need to turn to the courts for assistance. There are a number of applications that can be made, including a spousal maintenance application. The proportionality of involving the court will very much depend on the circumstances of the parties.

Divorce is a challenging process, and when one party stops paying bills, it can add another layer of complexity and stress. However, the law provides mechanisms to address these issues, from communication and mediation to legal proceedings. It is crucial to be aware of your rights – do not hesitate to contact us if you are finding yourself in this situation.

Ready to take the next step? As leading divorce solicitors in Milton Keynes, our team of family law specialists can advise and guide you from the moment we start working with you. As well as our head office in Milton Keynes, we also have offices in Watford and London. Talk to us in confidence and find out where you stand. Get in touch – we’re here to help.

This article is intended for the use of our clients and other interested parties. The information contained in it reflects the author’s view and is believed to be correct at the date of publication. However, it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional legal advice.