How are debts divided between spouses on divorce?

What the Law Says

Canadian family law treats marriage as an economic partnership. Most provinces have family property legislation that governs how debts — like credit card balances, loans, or mortgages — are divided when spouses separate or divorce.

Under provincial family property laws, debts incurred during the marriage are usually included in the 'net family property' calculation and divided equally, just like assets — unless doing so would be 'clearly unfair'.

The court may order an unequal division only if evidence shows that equal sharing would result in significant injustice — for example, if one spouse secretly ran up gambling debts or took out a loan without the other’s knowledge or benefit.

Debts incurred before marriage or after separation are typically excluded from division, unless they were used to maintain family assets (e.g., a mortgage payment after separation to preserve the matrimonial home).

Statutory Text

The court may award a spouse an amount that is unequal to the spouse’s share of the net family property if the court is of the opinion that equalization would be clearly unfair.

— Family Law Act, R.S.O. 1990, c. F.3, s. 5(6) — Equalization of net family property

Statutory Text

Debt means any liability of a spouse, including a contingent liability, that is in existence on the valuation date.

— Family Law Act, R.S.O. 1990, c. F.3, s. 4(1) — Definition of debt

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