{"id":1818,"date":"2020-03-27T11:00:09","date_gmt":"2020-03-27T18:00:09","guid":{"rendered":"https:\/\/www.dreyerandassociates.ca\/?p=1818"},"modified":"2023-04-05T13:31:42","modified_gmt":"2023-04-05T20:31:42","slug":"what-happens-to-debt-after-separation","status":"publish","type":"post","link":"https:\/\/www.dreyerandassociates.ca\/resources\/what-happens-to-debt-after-separation\/","title":{"rendered":"What Happens to Debt After Separation"},"content":{"rendered":"

If you\u2019re facing a <\/span>separation or divorce<\/span><\/a>, chances are the topic of finances is on your mind. While many people tend to be more focused on dividing assets and property, it is important to remember that debts will also be divided.<\/span><\/p>\n

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Who is responsible for debts after separation?<\/span><\/h3>\n

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Since the law treats married couples and couples that have lived together for two or more years as spouses, debts incurred during this time become what is known as \u201cfamily debt\u201d (mortgages, loans, income tax, etc.), and generally <\/span>both partners are considered equally responsible<\/span><\/a>.<\/span><\/p>\n

Regardless of whose name the debt is in or even if one partner wasn\u2019t aware of the debt, so long as both partners are recognized by the law as spouses, this family debt is generally a shared responsibility.<\/span><\/p>\n

Additionally, if one or both partners take on debt after the separation to take care of such family debt, then this also usually becomes a shared responsibility (eg. borrowing against a shared mortgage).<\/span><\/p>\n

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How are debts divided?<\/span><\/h3>\n

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Typically, debts that were incurred during the relationship are the equal responsibility of both spouses. Without any additional agreements, this is the case most of the time. With the introduction of a prenuptial, cohabitation, or separation agreement, however, debts may be divided unequally.\u00a0<\/span><\/p>\n

In the instance that one of these agreements exists, the agreement would generally be honoured by the courts. There may, however, be some exceptions to this where an agreement can be overturned. Some examples might include:<\/span><\/p>\n