Do I have to tell my Partner if I start a Trust Deed?
If you are struggling with a debt problem one of the most difficult things to do is to tell your spouse or partner about it. As such if you are considering implementing a Trust Deed (TD), it is likely that you will want to avoid involving your partner.
Once the agreement is in place your spouse or partner does not become liable for your debt in any way. As such you are not legally obliged to tell them about the arrangement if you do not want to. However whether or not you do decide tell your partner will depend on your circumstances.
If you are not living together and your finances are totally separate then there is normally no reason why you should tell your partner if you do not want to.
It will probably be relatively easy to keep the fact that you are in an TD to yourself as long as your partner is not in the habit of opening your post. However things do become more difficult if you combine your incomes in any way.
Declaring your partner’s income when starting a Trust Deed
If your relationship is such that you combine your finances then it will be more difficult not to tell your partner or spouse about your Trust Deed.
The reason for this is that in order to work out the amount you have to pay into the agreement you will have to declare your partner’s income.
It is important to understand that your spouse or partner will never become liable for your debt. However they will be expected to contribute their fair share towards the joint household living expenses.
So for example, if you both earn the same amount, your partner will be expected to pay for half of the joint living expenses such as the rent, mortgage and utilities.
To prove what they earn and thus what they should be paying towards the joint bills you will normally have to provide copies of their wage slips. Clearly it is not normally easy to provide these without letting your partner know what you need them for.
Do you want help to start a Trust Deed? Give us a call on 0800 077 6180 or complete the form below to speak to one of our experts
What happen in a Trust Deed if you jointly own your home?
If you jointly own your own home with your spouse or partner this is the one time when you really have to tell them that you are going to start a Trust Deed application.
The reason for this is that as part of your Trust Deed you will have to agree to release your half of the equity from your property. Clearly you will be unable to do this without the agreement and consent of the other joint owner of the property.
In addition, in order to prevent you selling your property without the agreement of the Insolvency Practitioner (IP) who is managing your Trust Deed, your IP will put a restriction order on your property. Any joint owners will have to be informed of this.
If you have not already told your spouse about your Trust Deed they will certainly want to understand why the restriction order has been put in place.
It is always best to tell your partner about your Trust Deed
Unless you own a property in joint names with your partner, it is certainly possible for you to start a Trust Deed (TD) without telling them about it.
However even if you do not have a joint property, generally speaking it is best to tell your partner that you have a debt problem and want to start a TD.
Clearly telling your partner or spouse that you are struggling with debt is not an easy thing to do. However in all by a very few cases partners will generally be supportive when they understand the problem and want to do everything they can to help you resolve it.
Ultimately if you chose not to tell your partner about your Trust Deed remember that this could well still leave you with ongoing stress in your relationship.
Your partner will not understand why you are being careful with your money and rather than supporting you, unwittingly they may put you under pressure to spend what you have not got which will make life extremely difficult.
Arrange a call with a Trust Deed Expert
Your information will be held in strictest confidence and used to contact you by our internal team only. We will never share your details with any third party without your permission.