QLD Recent Separation - Responsible for Debts in Husband's Name Only?
- Thread starter Shuedi
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- debt help separation
The division of joint assets following divorce is known as a property settlement. In the first instance, parties must attend a family dispute resolution conference to try and reach agreement about how their financial affairs will be settled. It is possible to include in a mutually-agreed property settlement that your husband be liable for his debts.
However, if you're unable to reach agreement, you have until 12 months following finalisation of the divorce to pursue a property settlement through the court. In these circumstances, the court follows a four-step process:
1. What is the value of the joint asset pool? (This includes debts in which both parties have an interest, even those solely in your husband's name).
2. What was the financial and non-financial contribution of each party?
3. What are the future needs of each party?
4. Is the settlement just and equitable?
Basically, this means there is no formula around who carries what debt following divorce. It's simply decided on a case-by-case basis.
As for the repossession of goods, I believe the ordinary procedure where debts cannot be repaid is to declare bankruptcy. This will in turn lead to the sale of all assets to repay as much outstanding debt as possible. I think this may be more closely linked to property law, though, rather than family law.
However, if you're unable to reach agreement, you have until 12 months following finalisation of the divorce to pursue a property settlement through the court. In these circumstances, the court follows a four-step process:
1. What is the value of the joint asset pool? (This includes debts in which both parties have an interest, even those solely in your husband's name).
2. What was the financial and non-financial contribution of each party?
3. What are the future needs of each party?
4. Is the settlement just and equitable?
Basically, this means there is no formula around who carries what debt following divorce. It's simply decided on a case-by-case basis.
As for the repossession of goods, I believe the ordinary procedure where debts cannot be repaid is to declare bankruptcy. This will in turn lead to the sale of all assets to repay as much outstanding debt as possible. I think this may be more closely linked to property law, though, rather than family law.
Unfortunately from what I understand it and my experience, if debts were made when you both were together you may be liable for half of the debt even if it is in your ex's name. My ex had borrowed money from his mother without me knowing about it and because we were married at the time my ex tried to make me pay half from the settlement. There wasn't enough proof however to stop it from going further through the court, it was reduced from his super split for him to take on the full debt and pay them back. (I knew there was no intention) I wanted to focus on the kids more as they are more important to me and I didn't want money to muddy the waters.
