Joint bank accounts and loans after a relationship break up | SavvyWoman.co.uk

Many couples choose to open a joint bank account or to take out a mortgage or loan together It's often a convenient way to organise your finances

But it's important that you understand exactly what you're signing up to Research carried out for SavvyWoman showed that over sixty percent of people didn't know the rules about who's responsible for debts on joint accounts So what are the rules? With a joint bank account that has an overdraft facility or a joint mortgage or loan, either of you can be held responsible for repaying the entire debt on the account And not just half each, as you might imagine So if you and your partner were to split up and one of you couldn't or wouldn't pay your share the bank or mortgage lender could contact the other one and ask them to make the repayments in full

If you and your partner split up it might be a good idea to ask the bank to freeze any joint accounts you have with an overdraft facility if you think your partner may go on a spending spree or run up debts If it's a joint mortgage you may be able to get one person's name removed from the agreement if the mortgage lender is happy that the other person can afford to make the payments in full There's much more detailed information about joint accounts and how to organise your finances as a couple, in the Money and Your Partner section of SavvyWoman