Debt after separation: Who owes what? Who pays what?

How to make your ex pay their share of the debt?

By Special to MoneySense on January 15, 2019
Estimated reading time: 3 minutes

Rita's common-law partner left her high and dry last spring.

Who is responsible for debt after separation?

Q. My common-law partner of 20 years left last year with no communication with me whatsoever. He has left me with all the debt. He had told my daughter that he has another bank account and has been planning this since May. What can I do legally to get him to accept his responsibility for the debt? –Rita A. Hello, Rita. It sounds like your common-law partner thinks that leaving and changing his bank account alleviates him from any responsibilities. Because you are common law, you are not protected under matrimonial law when it comes to property issues. So your situation now is no different than if you and I were business partners and I decided to walk away. Still, it’s often not as cut and dry as the picture I’ve painted, and a lot of factors could come into play. Which is why I advise common-law partners who want to protect assets as separate, or want to have some say over ownership and disposition of assets, that the best way to accomplish this is through a domestic contract.

First things first for dealing with debt after separation

For any debt that is incurred in both names, it is completely joint and therefore both parties are equally responsible. In cases such as yours where there is no contract, the first thing I would do is notify all the creditors that you have joint debt with a partner. It’s a good first step to let them know this. But this step alone doesn’t absolve you of responsibility for debt after separation, and you will probably be told that you are now completely responsible for the debt yourself. I would then urge you to seek legal counsel. I would also cancel or close down any accounts/credit cards that you have as this will stop any future debt from accruing and being your responsibility. Finally, if you continue to make payments on the debt in an attempt to keep all the balls in the air, I would keep very good records and receipts for the future in case you decide to pursue civil litigation and try to hold your partner accountable for the debt after separation. Debbie Hartzman is a Certified Financial Planner, a Chartered Life Underwriter and Certified Divorce Financial Analyst in Kingston, Ont. She is also the author of “Divorce is not easy, but it can be fair.” This article is presented by BDO Debt Solutions, as part of the guide: “The New Normal: Take control of your finances and debt.”

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Comments Cancel reply

Paula Swyers says:

June 19, 2021 at 2:43 pm

Hi my exhusband and u divorced he signed with his lawyer to assume the line if credit 35000.00 with the bank as i paid all other bills in our name it was signed in supreme court by a judge but he is not paying it what are my legal rights

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1. Courtney Reilly-Larke says:
  
  June 30, 2021 at 5:24 pm
  
  Due to the large volume of comments we receive, we regret that we are unable to respond directly to each one. We invite you to email your question to [email protected], where it will be considered for a future response by one of our expert columnists. For personal advice, we suggest consulting with a qualified advisor.
  
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