Are You Liable for a Loan Your Ex Took Out?
After a separation, many people find themselves suddenly facing financial questions they hadn’t thought to ask before. One of the most common?
"Am I responsible for a loan my ex took out?"
It’s a fair question — and the answer depends on a few key things.
Were You a Co-Borrower or Guarantor?
If you signed the loan documents — either as a borrower or guarantor — you’re still legally responsible for the debt. Ending a relationship doesn’t end your obligations to the bank.
Even if your ex agrees to take on the loan, the lender needs to agree to release you, and that usually only happens if your ex can refinance in their own name.
So if your name is still on the loan, you're still on the hook — even if you’re not getting any benefit from it anymore.
What If the Loan Was in Their Name Only?
Here’s where it gets tricky. Even if you didn’t sign the loan, the Family Law Act allows debts to be considered as part of your property settlement — especially if the funds were used for shared purposes, like household expenses, holidays, or home improvements.
This means that in some cases, even if a loan is technically only in your ex's name, you might still end up contributing to it as part of dividing assets and liabilities.
Post-Separation Loans
If your ex took out a loan after you separated and you had nothing to do with it, you’re generally not liable — but it's still worth being cautious.
Sometimes people continue to use joint accounts or shared credit cards after a breakup without realising the risk. And occasionally, loans taken after separation are disputed if one person claims the funds were used for joint obligations.
What Can You Do?
Get clear on your liabilities. Ask your bank or lender what accounts or loans you're still linked to.
Check your credit report. It’s the easiest way to find out if your name is attached to anything unexpected.
Close joint facilities. If it’s safe to do so, shut down joint bank accounts and freeze any unused lines of credit.
Get legal advice. Before finalising any settlement, make sure the division of debts and assets is clear and legally binding.
Final Thought
Financial separation is just as important as the emotional one — and it can take longer to untangle. Even if your ex took out the loan, if your name’s on it, you could be affected.
At Alpine Legal, we help people work through these practical issues with empathy and clear advice. If you're not sure where you stand, a quick conversation with a lawyer could save you months of stress later.