Debt and relationships: what you owe when you separate

Relationship breakdown is stressful enough without debt confusion. Here's what you need to know about who owes what.

The basic rule

**The person who signed the credit agreement is responsible for the debt.** Not the person who spent the money. Not the person who benefited from it.

Joint debts

If you both signed (joint loan, joint credit card, joint mortgage), you're both **jointly and severally liable**. This means:

Sole debts in your ex's name

If a debt is only in your ex's name, you are **not responsible** for it — even if:

Sole debts spent on your ex

If a debt is in your name but your ex spent the money (e.g., they used your credit card), you are still legally responsible. Your recourse is through family court during the financial settlement.

What to do about joint debts

1. Contact the creditor

Explain the situation. Ask about splitting the account or converting to individual accounts.

2. Close joint accounts

To prevent your ex from borrowing more, ask the bank to convert joint accounts to "require both signatures" or close them.

3. Financial de-linking

Contact all three credit reference agencies (Equifax, Experian, TransUnion) and request a **financial disassociation**. This removes the link between your credit files.

4. Get legal advice

In divorce or dissolution, debts can be divided as part of the financial settlement. The court considers all circumstances.

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