How to Split Joint Bills and Debts After a Breakup

When a relationship ends, untangling shared financial commitments is one of the most stressful and practically urgent tasks people face. Joint debts, shared bills, bank accounts, mortgages, council tax, and child-related costs all operate under different rules — and the legal framework that applies depends heavily on whether the couple was married, in a civil partnership, or cohabiting without formal legal status.

This guide sets out how the UK system handles splitting joint bills and debts after a breakup. It covers the legal principles that govern who owes what, the processes involved in separating finances, and the key distinctions between married and unmarried couples. It is written for England and Wales; readers in Scotland and Northern Ireland should be aware that specific rules, legislation, and court procedures may differ in those jurisdictions.

The single most important principle to understand is joint and several liability. For any joint debt — whether that is a mortgage, a loan, a credit card, or an overdraft — each party is legally responsible for 100% of the debt, not just half. A lender can pursue either person for the full amount. If one person stops paying, the other must cover the entire obligation.

This principle applies regardless of any private agreement between the two parties about who was "supposed to" pay what. A private agreement between two ex-partners may be enforceable between them as a contract, but it does not bind the creditor — the lender can still pursue either party for the full amount. In family finance terms, a consent order is what makes a settlement binding on the parties and bars later claims.

For married couples and civil partners, the courts have wide discretionary powers under the Matrimonial Causes Act 1973 to divide assets and liabilities as part of a financial settlement. For unmarried couples, there is no equivalent framework. Cohabiting partners have no automatic financial claims against each other; disputes over property and finances must be resolved through property law, primarily under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA).

Joint and Several Liability

Joint and several liability is the cornerstone principle governing shared debts in the UK. When two people take out a joint financial product — such as a mortgage, personal loan, joint credit card, or bank overdraft — both are fully and individually liable for the entire balance. The creditor does not have to split the debt between the two parties or pursue them proportionally. If one party disappears, refuses to pay, or simply cannot afford their share, the other party is legally on the hook for the full amount.

This applies to joint mortgages, joint loans, joint credit cards, and joint bank account overdrafts. The creditor's only concern is recovering the debt; it is not required to consider what arrangement the two parties may have had between themselves.

Joint Bank Accounts

Either party can withdraw all funds from a joint bank account. There is no rule limiting withdrawals to a proportional share. If the account is overdrawn, both parties are liable for the full overdraft amount under the same joint and several liability principle.

Banks may restrict a joint account on request, though policies vary. Where an account is restricted, withdrawals by either party are prevented, which may disrupt regular payments such as mortgages or bills that are set up from the account.

Closing a joint bank account typically requires the consent of both parties. If the account is overdrawn, the bank may require the debt to be settled before the account can be closed.

Utility Bills

If both names are on a utility account (gas, electricity, water), both parties are jointly and severally liable for payment. If the account is in only one person's name, that individual holds sole legal responsibility for the balance, regardless of any informal agreement about splitting costs.

Council Tax

Council tax liability is governed by a statutory hierarchy (based on whether the person is a resident freeholder, leaseholder, tenant, licensee, and so on). Where two adults are jointly liable, the council can pursue either for the full amount. When only one adult aged 18 or over remains in the property, a 25% single person discount applies. This discount usually needs to be claimed or confirmed with the council, and it must be cancelled if circumstances change. Joint liability for council tax continues until the local council is notified that circumstances have changed.

Northern Ireland operates a separate domestic rates system rather than council tax.

The Legal Framework for Married Couples and Civil Partners

The Matrimonial Causes Act 1973 governs financial settlements for married couples and civil partners upon divorce or dissolution. Courts have wide discretionary powers to divide assets and liabilities in a way the court considers fair. Section 25 of the Act sets out the factors the court must consider, including the financial needs of each party, the standard of living during the marriage, the duration of the marriage, and the welfare of any children.

Crucially, while informal agreements reached between separating spouses may be enforceable between the parties as contracts, they do not bind creditors — and without a financial consent order approved by the court, either party may bring further financial claims at a later date. The case of Wyatt v Vince [2015] demonstrated the risk of future financial claims when no sealed consent order is in place.

The Legal Framework for Unmarried Couples

There is no such thing as a "common law spouse" in the law of England and Wales. Cohabiting couples, regardless of how long they have lived together, have no automatic financial claims against each other when they separate. Property rights are determined by legal ownership, financial contributions, and the law of trusts — not by the duration or nature of the relationship.

Where unmarried couples dispute property ownership, the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA) provides the legal mechanism. Courts can determine each party's beneficial interest in a property and can order its sale. These claims are heard in the civil courts, not the family courts, and general pre-action conduct and exchange of information is expected before issuing proceedings. TOLATA claims often take many months; the duration varies widely by court and complexity.

Children and Financial Provision

The Child Maintenance Service (CMS) calculates and enforces child maintenance payments. The CMS calculates maintenance up to the statutory cap (currently £156,000 gross per annum); courts can consider top-up maintenance above that cap. CMS maintenance is generally payable until the child reaches 16, or until 20 if the child remains in approved education or training. The CMS does not have jurisdiction over university or tertiary education costs.

The application fee for CMS is £20, though the fee may be waived in limited circumstances.

Where a paying parent's income exceeds the CMS statutory cap, or where specific capital provision is needed, unmarried parents can seek financial provision for children through the courts under Schedule 1 of the Children Act 1989. These claims are for the child's benefit, not the parent's, and any property transferred typically reverts to the paying parent when the child reaches 18 or completes education.

Protection Orders

The Family Law Act 1996 provides for Occupation Orders, which regulate who can live in the family home, and Non-Molestation Orders, which protect against harassment and abuse. These orders are available to married couples, civil partners, cohabitants, and certain other associated persons. An Occupation Order can require a person to leave the home or restrict their access to it.

Financial Consent Orders (Married Couples)

A financial consent order is the mechanism by which a financial settlement between divorcing spouses becomes legally binding. The court usually cannot approve a consent order until the divorce has reached the conditional order stage (formerly known as decree nisi). Both parties must provide full financial disclosure via Form D81. The court fee for submitting a consent order application is £60, though this figure is subject to change. In most cases, court approval takes between 4 and 10 weeks from submission. A judge may reject the order if it appears unfair or if financial disclosure is incomplete. An online application system has been available since April 2022.

Severing a Joint Tenancy

Where separating co-owners hold property as joint tenants, either party can unilaterally sever the joint tenancy by serving written notice on the other joint tenant under Section 36(2) of the Law of Property Act 1925. No consent from the other party is required. The severance is effective from the date the notice is served, not from the date it is registered. Severance converts the joint tenancy to a tenancy in common, which removes the right of survivorship — meaning that each party's share passes through their estate rather than automatically to the surviving co-owner.

Following severance, the change is registered with HM Land Registry using Form SEV, which carries no fee. A Form A restriction is entered on the title. Land Registry processing typically takes between 2 and 6 weeks, though some applications may be processed more quickly. Severing a joint tenancy does not affect mortgage obligations.

Matrimonial Home Rights (HR1)

A married spouse or civil partner who is not a legal owner of the property can register a Matrimonial Home Rights Notice (HR1) with HM Land Registry. This protects their right to occupy the home and prevents the property from being sold or remortgaged without their knowledge. Registration is free and the protection applies from the date of the application. The notice generally lasts until final order (unless cancelled earlier).

MIAM Requirement

Before applying to court for financial orders or child arrangements, attendance at a Mediation Information and Assessment Meeting (MIAM) is required unless an exemption applies. The court will not issue an application without a MIAM certificate or a valid exemption. Exemptions include situations involving domestic abuse, cases of urgency, bankruptcy, disability, or where a previous non-court dispute resolution process took place within the preceding four months.

Child Maintenance Service Timeline

Applications to the CMS can be made online or by phone. Assessment typically takes between 2 and 4 weeks, with payments usually made monthly thereafter.

"We agreed to split it 50/50"

A private agreement about who pays what portion of a joint debt may be enforceable between the two parties as a contract, but it does not bind the creditor. If one person stops paying their agreed share of a joint mortgage, for example, the lender will pursue the other party for the full amount. The lender is not bound by and generally has no interest in whatever arrangement the two parties made between themselves. For married couples, a financial consent order is the mechanism for making a settlement binding in family finance terms and barring future claims.

"Common law marriage gives me rights"

There is no legal concept of "common law marriage" in England and Wales. A couple who have lived together for many years — even decades — do not acquire the same legal rights as married couples or civil partners. Cohabiting partners have no automatic right to each other's property, pensions, or other assets upon separation. Property rights depend on legal ownership, documented contributions, and the law of trusts.

"The debt is in their name, so it's their problem"

For joint debts, this is incorrect. Joint and several liability means both parties owe the full amount regardless of who benefited from the spending. However, for debts that are genuinely in one person's name only, the named debtor generally holds sole legal responsibility. In divorce proceedings, though, debts in one spouse's name may still be considered as part of the overall financial settlement if they were incurred for the benefit of the family — for example, debts for school fees or a family holiday. Personal debts incurred for one party's sole benefit, such as gambling debts or luxury items, are in most cases more likely to remain with the named debtor, though court discretion applies.

"We can sort the finances out later"

For married couples, there is no time limit on bringing a financial claim against a former spouse unless a financial consent order has been sealed by the court. The Wyatt v Vince [2015] case demonstrated that financial claims can be brought many years after divorce if no consent order was obtained at the time.

"Freezing the joint account is straightforward"

Banks may restrict a joint account on request, but policies vary and the practical implications are significant. Restricting an account prevents withdrawals by either party and may disrupt regular payments including mortgage direct debits and bill payments.

Sole Debts Considered in Divorce Settlements

In divorce proceedings, debts that are in one spouse's name only are not automatically excluded from the financial settlement. In most cases, if the debt was incurred for the benefit of the family, the court may consider it as part of the overall financial picture. However, debts incurred for purely personal purposes — such as gambling or luxury purchases for one party's sole use — are more likely to remain with the named debtor. The court retains broad discretion in these matters.

Negative Equity

If a property held on a joint mortgage is sold at a loss, both parties remain liable for the mortgage shortfall. The shortfall may be split equally, by financial capacity, or as a court determines depending on the circumstances.

Mesher Orders

In some divorce cases involving children, a court may order a delay in the sale of the family home until a specified trigger event — such as a child turning 18. This is known as a Mesher Order. During the deferral period, both parties remain jointly liable for the mortgage. This type of arrangement requires a court order.

Schedule 1 Claims for Children of Unmarried Parents

Where a paying parent's income exceeds the CMS statutory cap of £156,000, or where specific capital provision is needed, an unmarried parent may seek financial provision for a child through Schedule 1 of the Children Act 1989. These claims are brought for the child's benefit. Property transferred under such an order typically reverts to the paying parent when the child reaches 18 or completes education.

Credit File Financial Associations

When two people hold a joint financial product, a financial association is created on each person's credit file. This means one person's credit behaviour may affect the other's credit report. After separation, once all joint accounts are closed and no outstanding joint debts remain, either party can apply for a notice of disassociation to have the financial link removed. In most cases, this requires contacting each of the three main credit reference agencies — Experian, Equifax, and TransUnion — individually, as the process may vary between agencies.

When a relationship ends, the legal system does not automatically divide financial obligations between separating partners. Joint debts remain joint until they are formally resolved — either through repayment, refinancing into one party's name, or a court-approved settlement.

For married couples and civil partners, the family court system provides a structured framework for dividing assets and liabilities. The key mechanism is the financial consent order, which makes a negotiated settlement legally binding and prevents either party from making future financial claims. Without a consent order, the door remains open for either party to bring financial claims at a later date.

For unmarried couples, the position is fundamentally different. There is no equivalent discretionary jurisdiction. Financial separation depends on who legally owns what, who is named on which debts, and whether any trust arrangements (express or implied) exist over shared property. Disputes over property must be resolved under TOLATA in the civil courts, which is a different process from family court and is governed by property law rather than principles of fairness between former partners.

In both cases, creditors are not affected by the relationship breakdown. A mortgage lender, credit card company, or bank does not adjust its expectations because a couple has separated. Joint and several liability continues to apply in full until the debt is settled or formally restructured.

Council tax liability should be reported to the local authority promptly when circumstances change, as the 25% single person discount usually needs to be claimed or confirmed. Utility accounts should be reviewed to ensure the correct person is named as the account holder going forward.

• Joint Liability: Joint and several liability means each party on a joint debt is responsible for 100% of that debt, not just their share. Creditors can pursue either party for the full amount.
• Private Agreements: Agreements about splitting debts do not bind creditors. A consent order is required for married couples to make a financial settlement binding in family finance terms.
• Unmarried Couples: There is no "common law marriage." Unmarried couples must rely on property law (TOLATA) to resolve disputes, with no automatic financial claims.
• Child Maintenance: The CMS handles maintenance up to a statutory cap. Courts can order top-ups. Maintenance typically lasts until 16 or 20 (if in education).
• Property Rights: Joint tenancies can be unilaterally severed. Matrimonial Home Rights protect non-owning spouses.
• Credit Files: Financial associations remain until a notice of disassociation is applied for after debts are settled.