Debts could be passed on to ex-partners

Divorced men and women could stand to inherit their ex-partner's debts, following a high court ruling.

The ruling closed a loophole that had previously allowed thousands of people avoid paying off the debts accrued by their spouse during their marriage.

Consequently, a debtor's former husband or wife can now be made to contribute to debt re-payments for up to five years after a divorce has been finalised.

The couple in question, David and Wendy Pearl Haines, from Stourport-on-Severn, divorced in 2003.

When Mr Haines was declared bankrupt two years later with debts of £132,000 his creditors sought a claim on the former marital home - worth £500,000 - now owned by his ex-wife.

The case was brought by solicitors Clarke Willmott. Gareth Schofield, a partner at the firm, commented: "This is a complete reversal from the widely accepted position that divorce settlements made by the matrimonial courts after a fully contested hearing are beyond reach in bankruptcy cases and cannot be overturned by a bankruptcy court."