18/10/2026
🚫 Myth Buster Monday 🚫
The name attached to a debt is not necessarily the end of the story.
A creditor may pursue the person - or people - legally responsible under the loan or credit agreement. However, in a family law property settlement, the treatment of that debt between separating parties is a separate question.
Relevant considerations may include:
➡ why and when the debt was incurred;
➡ how the borrowed funds were used;
➡ whether the debt benefited the relationship or family;
➡ what occurred after separation; and
➡ the parties’ overall financial circumstances.
This means a debt in one person’s name may still be relevant when determining the parties’ property settlement.
📌 The information above is general in nature and is not legal advice. If you need advice about your specific circumstances, we're here to help you.