Does my spouse's student debt reduce their net family property in equalization?

Yes. A spouse's student debt is a liability that reduces their net family property in the equalization calculation. Under the Family Law Act, a spouse subtracts all debts owed on the valuation date when computing their NFP. Student loans — government-backed or private — count as liabilities just like any other debt.

However, only debt existing at the valuation date (separation) is deducted. Student debt that has already been paid off before separation does not reduce net family property. And pre-marriage student debt requires slightly different treatment: debts owed at the time of marriage reduce the marriage deduction separately, meaning they factor in when calculating the amount of pre-marriage property available to subtract.

If one spouse carries significant student debt and the other does not, it will lower the indebted spouse's NFP, which may actually reduce the equalization payment that spouse must pay. The overall effect depends on both parties' full financial pictures.