If you are struggling with a debt problem one of the most difficult things to do is to tell your spouse or partner about the problem. As such if you are considering  implementing an Individual Voluntary Arrangement (IVA), it is likely that you will want to avoid involving your partner in any way.

If you start this type of debt solution your spouse or partner does not become liable for your debt and you are not legally obliged to tell them about the arrangement if you do not want to.

If you maintain totally separate finances then even if you are living together it may be relatively easy to keep the fact that you have started the Arrangement 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 and if you jointly own a property.

Declaring your partner’s income in an IVA

If your relationship is such that you combine your finances, then it will be more difficult not to tell your partner or spouse about the fact you plan to start an IVA.

The reason for this is that in order to work out the amount you have to pay into the Arrangement you will have to declare your partner’s income in the agreement. They will never become liable for your debt however they will be expected to contribute their fair share towards the joint household living expenses.

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 easy to provide these without letting your partner know what you need them for.

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Joint home ownership and IVA

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 an IVA application.

The reason for this is that as part of the Arrangement you will have to agree to release some of your equity at the end of the agreement if this is possible. 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 the Arrangement 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 them your spouse will certainly want to understand why the restriction order has been put in place.

Its normally best to tell your partner about your IVA

Unless you own a property in joint names with your partner, it is certainly possible for you to start an IVA 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 how you plan to solve it.

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 Arrangement 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.