You can pretty much guarantee that the lender will want to include your earnings when you try and negotiate a settlement. You can quite rightly argue that the shortfall is nothing to do with you and you should fight any attempt to include your income and assets (including the family home) when dealing with the lender.(posted 7981 days ago)Lenders can be very sneaky and demand that you must give details of your income as well, even more so when you've got the CAB acting for you. Most of the time, respossessees hand over the information about their spouse as they've no idea that they don't have to. Lenders and their solicitors can be very scary over this and give the impression that you're obliged to tell them what they want to know.
Do as previously advised and open another bank account in your own name and have the salaries of you and your husband paid into it. You can even arrange for your husband to act as an 'agent' on your account and be able to sign cheques on your behalf if he wants to.
Unfortunately, lenders don't seem to play fair when dealing with shortfalls and they will insist that you must complete their I&E forms. What your husband should do is get a full justification of every penny which they are claiming. There are sample letters and advice on what to look for and question elsewhere on this website.
This alone can take a long time, but it is usually well worth it and you may be able to negotiate a smaller settlement figure. If you can arrange to pay a lump sum rather than installments then all the better, as lenders may come back later trying to increase payments and asking for further information on your financial situation.
If you do negotiate a lump sum settlement then make sure you get an agreement written up by a solicitor (chosen by you) and make sure that it is in full and final settlement of any claim or future claim which the lender or their agents might have against your husband.
Good luck