If you’re considering applying for an Individual Voluntary Arrangement (IVA), it’s natural to worry about how it could affect your partner. Many people hesitate because they’re concerned it might harm their partner’s credit rating, put a shared home at risk or leave them dealing with debts that aren’t theirs. These worries are normal, especially where finances, housing or children are shared.
What is an IVA?
An IVA is a formal agreement set up by a licensed insolvency practitioner to help you repay unsecured debts in an affordable way. You make one monthly payment, usually over five or six years, based on what you can afford after normal living costs.
Once the IVA is approved, interest and charges are frozen, and any remaining qualifying unsecured debt is written off at the end of the arrangement**.
IVAs, Marriage, Civil Partnerships & Living Together
An IVA is an individual arrangement. Being married, in a civil partnership, or living together doesn’t make your partner responsible for your personal debts, and they won’t be added to the IVA.
Where your relationship does matter is around shared household finances. If you live together, your insolvency practitioner will look at how household bills and living costs are split, like rent or mortgage payments, council tax, utilities, food, and travel. This helps work out what you personally can afford to pay into the IVA.
Will an IVA affect my partner’s credit rating?
An IVA doesn’t appear on your partner’s credit file and won’t affect their credit rating on its own.
Your credit record and your partner’s credit record are separate. If all of your debts are in your name and there are no joint accounts, your partner’s credit rating shouldn’t be affected by your IVA.
The main exception is where you have joint financial accounts. If you share a joint loan, mortgage, overdraft or credit card, that account links your credit files. If the joint debt is included in your IVA and payments are reduced, the lender can record missed or reduced payments on the account. This can affect your partner’s credit record because they are jointly responsible for that debt.
Some people choose to remove financial links by closing joint accounts and asking the credit reference agencies to issue a financial disassociation. This doesn’t remove responsibility for existing joint debts, but it can help keep future credit activity separate.
Will my partner be contacted about my IVA?
In most cases, your partner won’t be contacted about your IVA, however, they may be asked to confirm in writing that they are happy for their income to be included as part of the income and expenditure that is prepared. Communication should be handled between you, your insolvency practitioner, and your creditors.
Aside from that, there are a few situations where your partner may be contacted:
- If you have joint debts, a creditor may contact your partner about the part of the debt they are responsible for, as the IVA only covers you.
- If their details appear on joint credit agreements or shared accounts.
How entering an IVA Will Impact a Joint Bank Account
A joint bank account can be affected by an IVA, even though the arrangement is in your name only. This is because both account holders have equal access to the money in the account.
Some banks choose to freeze or close joint accounts when one person enters an IVA, particularly if the bank is also one of your creditors. This is done to manage their risk, not because your partner is part of the IVA.
For this reason, many people are advised to open a new basic bank account in their sole name before the IVA starts. This allows wages, benefits, and everyday spending to continue without disruption. Your partner can continue using their own account as normal.
Any money held in a joint account at the point the IVA begins may be treated as jointly owned. Your insolvency practitioner may ask for clarification on who the money belongs to and how household finances are managed.
How an IVA Could Affect Savings
Savings held in your own name may need to be declared when setting up an IVA. Depending on the amount and the terms of the arrangement, some or all of those savings could be expected to go towards your debts.
Savings that belong solely to your partner aren’t included in your IVA. Money held in their name is not treated as your asset and isn’t available to creditors.
Joint savings can be more complicated. If a savings account is in both names, it is usually treated as being owned equally. Your insolvency practitioner may assume your share is available to be paid into the IVA, even if the money originally came from your partner. Clear records can help show who the funds belong to.
To avoid confusion, some couples choose to keep savings in separate accounts once an IVA is being considered.
Will an IVA Affect my Partner’s House?
Whether an IVA affects your partner’s home depends on how you live and who owns the property. The IVA itself is still in your name only, but housing arrangements can make things feel less clear.
If I Rent
If you rent your home, an IVA doesn’t affect your partner’s right to live there. The tenancy doesn’t change, and your partner won’t be at risk because of your debts.
Rent, council tax, and normal household bills are treated as essential living costs. Your share of these is allowed for when your IVA payment is worked out, so you are not expected to reduce these payments to fund the IVA.
If We Own
If you own a home, your insolvency practitioner will look at the property as part of the IVA. However, you will not be required to sell your home or use any equity in your home to pay for it. If your share of the equity is £10,000 or more, your IVA payments will run for six years rather than five to compensate your creditors.
The House in Your Name
If the property is in your name only, this equity rule applies in the same way. Your home is not at risk of being sold, and you will not be required to release equity to fund the IVA.
Getting a mortgage or remortgaging to a new provider while an IVA is in place is difficult and usually not realistic until the arrangement has ended, although there are brokers who specialise in arranging mortgages for people in an IVA.
The House is in Your Partner’s Name
If the property is solely in your partner’s name, it isn’t treated as your asset. Creditors won’t gain rights over a home your partner owns, and it cannot be included in your IVA.
You may still contribute to household costs, but ownership of the property itself isn’t affected.
The House is in Both Names
If the property is jointly owned, only your share of the equity is considered as part of the IVA. Your partner’s share belongs to them and is not included.
If you have a joint mortgage, both of you remain responsible for keeping the payments up to date. An IVA doesn’t change the mortgage agreement or transfer responsibility to your partner.
How the Household Income Impacts Your IVA
Your partner’s income and expenditure aren’t included in your IVA and aren’t used to pay your debts. However, if you live together, it is taken into account when working out how household costs are shared.
Your insolvency practitioner will work with you to look at the total household income to understand how rent or mortgage payments, council tax, utilities, food, and other shared bills are divided. This helps calculate what you personally contribute each month and what you can realistically afford to pay into the IVA.
Your partner won’t be expected to cover your IVA payment, and they won’t be asked to increase their contribution to household bills to make your IVA work. The assessment is about fairness and affordability, not shifting responsibility for your debts onto them.
Can I get a joint IVA with my partner?
Although an IVA is in one person’s name, your partner can enter into a separate IVA at the same time. Your partner’s IVA can either be individual or it can be interlocking with yours. If the IVA’s are individual, you and your partner will make separate contributions into your IVAs, and creditors will receive payment based on who’s IVA they are included in. If the IVA is interlocking, you and your partner will make a shared contribution into the IVA, and all of the creditors will receive a share of the joint funds.
If You Have Joint Debts
If you and your partner have joint debts, each of you is responsible for the full balance. If only one person enters an IVA, the debt can be included for that person, but the creditor can still ask the other person to pay.
This is why shared debts often need careful planning. An IVA protects the person in it, not the other named borrower.
If Your Debts Are Separate
If you live together but your debts are in your own name, your IVA only deals with what you owe.
If your partner is also struggling, they will need their own advice. Their options depend on their income, debts, and circumstances, and may include an IVA in their own name or a different debt solution.
Your IVA doesn’t protect your partner from their creditors if they have debts of their own.
What is an Interlocking IVA?
In some situations, couples choose to set up two separate IVAs at the same time. These are often referred to as interlocking IVAs.
Each person has their own IVA and remains responsible for their own debts. The arrangements are linked only because the household income and shared living costs are assessed together, and the arrangements are essentially treated as one IVA. One payment is made in respect of both IVA’s and the funds are shared amongst all of the creditors.
Interlocking IVAs can be used if debts are shared, separate, or a mix of both. Whether this approach is suitable depends on how your finances are set up, so you’ll need individual debt advice.
How Much Debt Is Usually Written Off in an IVA
Many people don’t repay the full amount they owe through an IVA. Payments are based on what you can afford after normal living costs, rather than clearing the debt in full.
In practice, a debt write-off of between 25% and 73% is realistic in many cases*. The exact amount depends on your income, household spending, assets, and how long the IVA runs. Creditors must agree to the terms before the IVA is approved.
At the end of the IVA, any remaining qualifying unsecured debt included in the arrangement is written off**.
Speak to NDH About Setting Up an Individual Voluntary Arrangement Today
If you’re thinking of setting up an IVA and you have a partner, it’s worth talking things through with a professional before you make any decisions. How you live, what you share, and how your finances are set up can all affect how an IVA works in practice.
NDH Financial helps people across England, Wales, and Northern Ireland set up IVAs designed for real life. Our licensed insolvency practitioner has over 15 years’ experience and has supported many people through the process.
A conversation with NDH gives you the chance to explain your situation fully, including any concerns about your partner, your home, or household finances. From there, you can decide what feels right, with a clear understanding of the options. Apply now to check your eligibility and to get started.
FAQs About How Partners Are Affected by IVAS
Will an ex-partner be affected by my IVA?
An ex-partner won’t be affected by your IVA unless there are joint debts still in place. If a debt is in both names, the creditor can still ask your ex-partner to pay, even if you include the debt in your IVA. If there are no joint debts or shared accounts, your IVA doesn’t involve them.
Is child maintenance included in an IVA?
Child maintenance arrears can’t be included in an IVA. You must continue to pay ongoing child maintenance and any arrears both during and after the IVA. These payments are treated as priority commitments and are allowed for in your budget.
Will an IVA before a divorce protect my finances?
Entering into an IVA will help you to deal with your unsecured debts, but it doesn’t override family court decisions. If you divorce during or after an IVA, the court can still take your financial position into account when deciding on settlements. It’s important to get advice that considers both debt and family circumstances.
Can my partner get credit while I’m in an IVA?
Your partner or spouse can still apply for credit in their own name if you have an IVA. Your monthly IVA payments don’t appear on their credit file unless you have joint credit accounts that link you financially.
Although your partner is free to apply and obtain credit, you and your partner should consider whether your partner incurring additional credit will impact your ability to maintain the required payments into the IVA.
What happens if my partner and I split up during the IVA?
If your living arrangements change, your IVA can be reviewed. Your payments may go up or down depending on your new household costs. IVAs are designed to help you with your remaining debt, so you must tell your insolvency practitioner if this happens so the IVA can be adjusted.
If you have entered into an interlocking IVA with your partner, the situation is a bit more complicated. If you and your partner are able to work together to maintain the agreed payments, the Supervisor will review the affordability of the payments, and provided they are affordable, the IVA will continue as normal. If you and your partner are unable to work together, the Supervisor will be required to propose a variation to your creditors.
Can my partner remortgage while I’m in an IVA?
If the property is in your partner’s sole name, your IVA shouldn’t stop them from remortgaging, although lenders will still carry out their own checks. If the property is jointly owned, your IVA may affect what options are available.
