IVA and Divorce or Separation: What Happens?

What Happens to an IVA if You Separate or Divorce?

Your IVA continues, but your budget will need updating. Tell your insolvency practitioner as soon as your circumstances change.

Last updated: November 2026

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Things to know about IVAs

An IVA is a formal insolvency procedure. It must be approved by your creditors, stays on your credit file for six years, fees are taken from your payments, and debts are only written off if you complete it. It isn’t right for everyone.

Read the key risks

Creditors must approve it. An IVA only goes ahead if creditors holding at least 75% of the debt that is voted agree. Your proposal can be rejected.
Credit file and public register. An IVA stays on your credit file for six years from the start date and is listed on the public Individual Insolvency Register while it runs. Getting credit will be harder.
Spending restrictions and annual reviews. You live on an agreed budget for the length of the IVA (usually 5–6 years). Your income and spending are reviewed each year, and your payment can go up.
Fees. Fees are taken from your monthly payments, so less of what you pay reaches your creditors. How IVA fees work.
Your home. Under the current IVA Protocol, your home isn’t included in the IVA and you won’t be asked to remortgage. If your share of the equity is £10,000 or more, the IVA usually lasts six years instead of five.
If it fails. If you can’t keep up payments the IVA may fail, you would owe the remaining debt again, and the supervisor may petition for your bankruptcy.
Write-off only on completion. Remaining qualifying unsecured debts are only written off if the IVA is completed successfully. Secured debts, court fines, child maintenance, student loans and some other debts can’t be included.
Other options may suit you better. A debt management plan, DRO or bankruptcy may be more suitable. IVAs are available in England, Wales and Northern Ireland only; different solutions apply in Scotland.

A separation or divorce changes almost everything about your finances: where you live, what you pay for and who you share costs with. Your IVA doesn’t end when a relationship does, but it can be adjusted.

The short answer

A separation doesn’t end your IVA.
Your IVA payment is reviewed based on your new income and costs.
If you have a joint IVA (two linked IVAs), each can continue separately.
Your ex-partner remains liable for joint debts in their own name.
Property and financial settlements may need your insolvency practitioner’s input.

How does separation affect my IVA payments?

Your payment is based on your household income and spending. When you separate, both change. You may lose a contribution to shared bills, or start paying rent somewhere new. Tell your insolvency practitioner, who can review your budget and propose a change to your payments if needed.

What if we had linked IVAs?

Couples sometimes have two interlocking IVAs. After a separation, each IVA usually continues on its own, with each person’s payment recalculated. Problems with one IVA don’t automatically end the other, but get advice early.

What happens to joint debts?

If only you are in an IVA, any joint debts are included for your share. The other person remains liable for the full balance, so the creditor may chase them. See our guide to joint debts in an IVA.

What about the family home?

If the home is sold or transferred as part of a divorce, any money you receive may have to be considered under your IVA terms. Talk to your insolvency practitioner before agreeing a financial settlement.

Common questions

Can I get an IVA during a divorce?

Yes, but it’s often better to wait until your living arrangements and income are settled, so the IVA is based on realistic figures.

Will my ex have to pay my IVA?

No. Your IVA is your personal arrangement. Your ex is only affected if you have joint debts, which they remain liable for.

Does a divorce settlement go into my IVA?

It may. Lump sums or property proceeds received during your IVA usually need to be reported and may be paid to creditors.

How IVA Advice Online can help

Every situation is different, and an IVA isn’t right for everyone. We can look at your income, spending and debts with you and set out the debt solutions you could qualify for, including options other than an IVA. To talk it through, get in touch.