Are You Responsible for Your Spouses Debts?

Ontario provincial legislation declares that each spouse has an obligation to provide support for the other spouse to the extent that he or she is capable of doing. Each spouse is responsible for his/her own debts but while the spouses are living together, one spouse can purchase, on joint credit, goods and services that are true necessities of life and both spouses are responsible for payment. However, a spouse may not pledge the other spouse's credit where the supplier has been notified that the other spouse will not be responsible for the debt.

If one spouse co-signs any credit agreements issued in the other spouse's name, or if one spouse contracts a debt on the other spouse's behalf and with the other's consent he or she is responsible for these debts if the other spouse fails to pay.

A husband can withdraw his wife's privilege to use his credit and a wife can withdraw her husband's privileges to use her credit by notifying the creditors to stop extending credit to the other spouse.

A change in marital status, in itself, should be no reason to deny access to credit. If changing your status seriously affects you financial situation, however, your credit worthiness may be put in question.

You may have a very difficult time getting credit once you are on your own. If you cannot meet your debt payments you should contact your creditors to negotiate reduced payments or to make other suitable arrangements. If you are not successful don't give up, seek the help of a certified, non-profit credit counselling service. If you wish, they will be able to negotiate with the creditors on your behalf or help you to decide other ways in coping with your new financial circumstances.