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Many couples believe that after saying ‘I do’, their partner’s debt becomes shared. For existing debt, this is not the case. If one person comes into a marriage or
If one partner incurs a debt after nuptials, it will usually remain the responsibility of the partner
A guarantor can be used by a lender to sign a loan, often when the borrower is deemed likely to fall through on their debt. A guarantor can be held responsible if the borrower does not pay their debt. As a guarantor, your assets are on the line if the borrower defaults on the loan. If a guarantor fails to pay, they can be sued for the money owed. Before signing as a guarantor on a loan, it is recommended that one seeks legal counsel.
If you sign a contract such as a mortgage with your partner, as a co-borrower, you are responsible for paying back the loan. A typical contract will have partners borrowing jointly, which means that each party will be liable for the full amount (instead of half each). This means that the lender can go after one party individually for the entire amount if the loan repayments fail to be made.
This is often the case if you are in business with your partner. If you are in business together, it can be understood that if one party signs, the other party is also liable. This can mean that your partner can sign contracts on your behalf, making you liable. It is important to make all parties aware if you do not
If you are concerned about sharing debt with your partner, ensure that you think carefully before entering into any of these decisions. Always seek legal counsel before signing as a guarantor, co-borrower, or are having someone sign on your behalf.
If a marriage or
Coming clean about your debt to a friend or family member can be difficult. Being honest with a partner can be even harder, but can assist by lifting some of the mental
Beyond Debt is a trading name of DCS Group Aust Pty Ltd. Australian Credit License: 382607. RDAA Number: 1126. PO Box 3074 Newstead, QLD, 4006.
DCS Group operates under a Limited Liability scheme approved under Professional Standards Legislation
