Are Debts Shared in a Divorce or Separation?
Divorce and separation are not only emotionally challenging but also come with complex financial implications. One of the most pressing questions that arise during this period is how debts are divided between the separating parties. Understanding how debts are shared can help you navigate the process with clarity and confidence. If you’re in Adelaide and facing such a situation, consulting experienced Adelaide family lawyers can be immensely helpful. Understanding Debt Division In Australia, debts incurred during the marriage or de facto relationship are generally considered joint responsibilities. However, the division of these debts isn’t always straightforward. The Family Law Act 1975 governs how debts and assets are divided, ensuring that the distribution is fair and equitable, though not necessarily equal. Factors Influencing Debt Division Nature of the Debt: Whether the debt was incurred for joint purposes or individual reasons plays a significant role. For example, debts ac