NSW Ex Took Out Loan After Separation - Liable for Her Debt?

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Christaci1

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14 January 2016
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My wife and I separated amicably 2 years ago. We had no assets apart from furniture, a car and $60,000 thousand dollars which I brought into the relationship. She was gainfully employed (I was not) and took out a loan (post separation) of $45,000 to help her start again. She also had a visa card on her name only with a $40,000 limit.

3 months ago, she decided to withdraw the full limit and go and live overseas. She now owes the balance of her loan and her visa totalling $70,000. Am I in any way liable for her debt? Can the creditors come after me?

I would appreciate your response.
 
S

Sophea

Guest
As far as creditors coming after you go - no. As long as all the loans and cards are in her name only, then they can only pursue her for the money.

The only way you could be conferred a share of this debt is if you were to have a court property settlement (either of you can apply for this up to one year following divorce being finalised) and the court for some reason felt it fair and just to apportion the debt.

Given the circumstances and the modest funds involved in a settlement it would be (a) pointless to incur the cost of a court application and (b) unlikely they would award you liability for her debts incurred post separation (though not impossible).
 
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Christaci1

Member
14 January 2016
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Thank you Sophea, the information was helpful. Can you help with one more question, please?

Can the creditor bankrupt my ex-wife and the trustee gain property settlement rights and enforce them against me?

What constitutes "the property of the bankrupt" is defined to mean the property divisible amongst the bankrupt's creditors and any rights and powers in relation to that property that would have been exercisable by the bankrupt if he or she had not become a bankrupt?
 

sammy01

Well-Known Member
27 September 2015
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I'd be thinking that the trustee could only gain enforcement rights against you if you had assets in common with the ex. Like her name was on the title of your house...