In Canada, you’re not automatically liable for your spouse’s debt. If your partner has a credit card, line of credit, or student loan in their name only, creditors can’t legally chase you for it.
But there are exceptions. If you’ve ever co-signed, taken out a joint loan, or held a joint credit card, you could be on the hook for the full balance. Family law also comes into play if you separate, since debts factor into how property gets divided.
If this is something you’re dealing with, you’re not alone. In this blog, we’ll run through some of the most important things to know about spousal debt and what help is available.
Jump to:
- What debts am I legally responsible for in my marriage?
- Are debts shared in a marriage?
- Joint vs. individual vs. authorized user accounts
- Does co-signing my spouse’s loan make me responsible?
- Does being married or in a common-law relationship make me liable for their debt?
- How does family law divide debts if we separate in Canada?
- After divorce or separation, can creditors still chase me for my spouse’s debt?
- Am I responsible for my spouse’s debt after death?
- What types of spouse debt am I responsible for?
- Can my spouse’s bad credit or missed payments hurt me?
- How can I protect myself from being responsible for my spouse’s debt?
- Should we file a joint consumer proposal or separate ones
What debts am I legally responsible for in my marriage?
- Individual debts: Belong solely to the signer.
- Joint debts: Both parties are 100% liable (joint and several liability).
- Co-signed/guaranteed loans: You’re fully responsible if your spouse defaults.
- Authorized users: Not legally liable, though your credit can still be impacted.
- After death: Debts are paid out of the estate, not automatically by the spouse.
Are debts shared in a marriage?
When it comes to debt in a marriage, creditors look at the contract. If your name is on the loan or credit agreement, you are legally responsible for repayment. If you never signed for it, the lender cannot chase you for the balance.
Family law works differently, though. On separation or divorce, debts may be considered when dividing property between spouses. That process can affect how much each person owes the other, but it does not change the lender’s rights. Even if a court or separation agreement assigns a debt to one spouse, the creditor will still expect payment from whoever originally signed the contract.
Did you know? 1 in 5 Canadian couples don’t know how much debt their partner is in.
Joint vs. individual vs. authorized user accounts
- Joint debt: Each spouse is 100% responsible, not just “their half.” If one stops paying, the lender can chase the other for everything.
- Individual debt: Only the named borrower is liable.
- Authorized user: If you’re just added to a credit card, you can use it, but you’re not contractually responsible.
Does co-signing my spouse’s loan make me responsible?
Co-signing or guaranteeing a loan makes you just as liable as the borrower. If your spouse misses payments, it doesn’t matter to the lender who used the money—they can come after both of you for the full balance.
This is where the legal term “joint and several liability” comes in: both of you are responsible for the entire debt, not a split.
Does being married or in a common-law relationship make me liable for their debt?
Being married or in a common-law relationship doesn’t automatically merge your debts. Liability comes from contracts, not marital status. That said, in both cases, debts may count in property division if you separate.
How does family law divide debts if we separate in Canada?
This depends on the province you live in. Take Ontario as an example. When couples separate, the equalization process calculates net family property. Debts reduce that value. Even if you didn’t sign your spouse’s loan, their debt can lower the property they bring to the table, changing how much equalization payment is owed.
After divorce or separation, can creditors still chase me for my spouse’s debt?
Separation agreements can divide responsibility, but they don’t bind creditors. If you and your ex agree, your spouse will pay the joint credit card, but if they stop, the lender can still chase you. Some couples choose to close or refinance joint accounts during separation to make this process simpler.
Read more: What happens to my debt during a divorce?
Am I responsible for my spouse’s debt after death?
If your spouse passes away with individual debt, you’re not automatically liable. Their estate pays debts before heirs receive anything. You’d only be liable if:
- You co-signed
- The debt is joint
- You guaranteed it
What types of spouse debt am I responsible for?
Here’s a closer look at some of the most common types of spousal debt, and whether or not you could be responsible for them:
Spousal debt in credit cards
- Individual: Only the credit card holder is liable.
- Joint: Both are equally responsible.
- Authorized user: Not liable, but still risky for your credit if payments are missed.
Spousal debt in mortgages, loans, and lines of credit
If the mortgage or line of credit is under a joint account, you are both are responsible for the entire balance. Even if you “agree” one spouse pays, the lender can chase either.
Spousal debt in student loans
Only the borrower is liable for their student loan debt. Some exceptions apply after death, and repayment relief exists in insolvency after a set period.
Tax debt
Tax debt is personal. So, if your spouse owes back tax debt in Canada, the CRA will not pursue you unless you were directly responsible or received fraudulent transfers. After death, the estate pays tax debt before inheritance.
Can my spouse’s bad credit or missed payments hurt me?
Your credit score is individual. But on joint applications (like mortgages), lenders look at both. A partner’s poor credit can limit approvals or increase interest rates. Missed payments on joint accounts hit both credit reports.
Should we file a joint consumer proposal or separate ones?
If most of your debts are joint, filing a joint consumer proposal can make sense, as it allows both of you to restructure what you owe together. If the debts are mostly individual, separate filings are usually better. Your LIT will explain which option offers the best protection and outcome for your household.
How Harris & Partners can help if you’re worried about spousal debt
At Harris & Partners, our Licensed Insolvency Trustees walk couples through tough debt questions every day. Whether it’s a joint proposal, separate filings, or another solution entirely, we’ll guide you toward the option that keeps your family secure. Book a free, confidential consultation today, and take the first step toward peace of mind.
