Where are debts declared on Form E?
Liabilities are declared in Section 2.9 of Form E. This covers all debts and financial obligations in your name — sole or joint — other than mortgages, which are declared alongside the relevant property in Section 2.1.
For each liability you must state the creditor, the current outstanding balance, the monthly repayment, and whether it is in your sole name or jointly held. You do not need to attach statements for every debt, but you should be prepared to provide them if asked in a questionnaire.
What debts must you declare?
| Type of debt | Must be declared? | Notes |
|---|---|---|
| Credit cards | Yes | State the outstanding balance at the date of Form E, not the credit limit |
| Personal loans | Yes | Include bank loans, loans from family members, and any informal lending arrangements |
| Car finance (HP or PCP) | Yes | State the outstanding settlement figure, not the monthly payment |
| Student loans | Yes | Include outstanding balance; courts treat student loans differently from commercial debt |
| Tax liabilities (HMRC) | Yes | Particularly relevant for the self-employed; include any agreed payment plans |
| Overdrafts | Yes | State the outstanding amount drawn, not the overdraft limit |
| Buy now pay later balances | Yes | Declare any outstanding balance even if interest-free |
| Loans from family members | Yes | These are scrutinised carefully — courts look at whether they are genuine liabilities or informal arrangements |
| County Court Judgments (CCJs) | Yes | Include any outstanding CCJs even if disputed |
How are joint debts handled?
Joint debts — such as a joint credit card or a loan taken out in both names — must be declared by both parties. Both parties are jointly and severally liable for joint debts: the creditor can pursue either or both of you for the full amount regardless of any agreement between you about who should pay.
In the context of Form E, each party declares the joint debt in their Section 2.9 and notes that it is joint. The court will take this into account when considering the overall financial picture. A financial order can direct one party to take responsibility for a joint debt, but this does not bind the creditor — the lender can still pursue both parties if the ordered party defaults.
Family loans: how courts treat them
Loans from parents or other family members are a common feature of divorce cases — and a common source of dispute. Courts approach them carefully for several reasons:
- There is often no formal loan agreement, which raises questions about whether it is a genuine liability or an informal gift that has been recharacterised as a loan for the purposes of divorce
- Courts may question whether the loan is truly repayable or whether the family member intends to enforce it
- Loans made to one party by their own family during the marriage are sometimes treated as soft loans — liabilities in name but not in practice
If you have a genuine loan from a family member, attach any loan agreement in writing and be prepared to explain the terms, the repayment history, and why the loan was made. The more documentation you have, the stronger your position.
Does it matter whose name the debt is in?
Yes, but less than people expect. In financial remedy proceedings, courts look at the overall financial position of both parties — assets and liabilities together. A debt in one party's sole name will generally reduce that party's net financial position. However, courts have discretion to order one party to take on responsibility for a debt regardless of whose name it is in, particularly if the debt was incurred for the benefit of the household.
Running a credit check before completing Section 2.9 ensures no registered debt is accidentally omitted from Form E.
How are debts treated in a settlement?
There is no automatic rule that debts are split equally or that each party takes responsibility for their own debts. Courts take a holistic view. In practice, common outcomes include:
- Each party takes responsibility for debts in their own name as part of a clean break
- A joint debt is allocated to one party with an offsetting adjustment to the asset split
- The sale of an asset is used to discharge a joint debt before the remaining proceeds are divided
- One party is directed to refinance a joint loan into their sole name within a specified period
Completing Form E yourself?
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