If I’m separating or getting divorced, will I have to pay my ex-spouse’s debts?
Absolutely not! Personal debts are personal, whether you’re in a relationship or separated. If, for example, your ex leases a car under their name, they’re the one who has to pay for it.
When some couples separate, however, they reach an agreement to pay back a personal debt together. They may agree informally (between themselves), through family mediation (with the help of an expert) or following a judgment in court (if they are unable to reach an agreement).
Do keep in mind that if you decide to make an agreement with your ex-spouse, your creditors won’t take this into account. To them, the people who signed the contract are responsible for the loan, regardless of what is happening with the relationship.
My ex-spouse and I borrowed together before separating. Now who will repay our loans?
Regardless of whether you’re together, you both signed the contract or contracts. Legally you’re in this together. That means if one of you doesn’t pay, the other will have to pay for both of you.
Of course you can reach an agreement to divide up your debts. One possible scenario: You agree to pay off your debts fifty-fifty. Another possible scenario: You agree to pay the entirety of a joint debt (a car loan, for example) while you ex pays another of your joint debts on their own (such as a line of credit).
Again, this agreement could be made informally, through family mediation or imposed by a judge.
Warning: Even if this agreement works well for you and your ex-spouse, it has nothing to do with your creditors. If you signed a car loan together, the bank will still consider you to have joint responsibility—regardless of the agreement between you and your ex-spouse to share your debts.
What happens to joint credit cards, accounts or lines of credit after a divorce?
You need to cancel these things with your bank as soon as possible. If you continue using a joint credit card after your separation, your ex-spouse can force you to reimburse all of your purchases. They can even sue you if you do not pay for the purchases you made.