Joint and several liability

Joint and several liability refers to two or more people being liable for it. Joint and several liability means they are both liable for 100 per cent of the debt.

Couples are only liable for each other’s debts when:

•specific legislation makes them jointly liable – eg, council tax;
•both parties have signed the agreement – eg, a joint bank account;
•they have signed a guarantor agreement.

If the couple are jointly and severally liable, the creditor can pursue either party for the full amount of the debt.

If one partner has forged the signature of the other to obtain credit, the client could challenge the debt. However, the adviser should explain that this means they will be accusing their partner of fraud, which is a criminal offence.