Who Pays the Bills and Debts After Separation in Saskatchewan?

After a separation, the bills keep coming. Joint accounts, credit cards, a mortgage and a car loan can all stay open while you and your partner sort out who is responsible for what.

This article explains in general terms how debts tend to work after separation in Saskatchewan, how the property division law fits in, and practical steps to protect your credit. How debts are treated in your case depends on the facts and the documents, so confirm the details with a lawyer.

This article covers the law of Saskatchewan.

Two questions: what the lender can do, and what you owe each other

It helps to separate two ideas. The first is what you owe the lender. That depends on the contract you signed and your situation, so it is worth confirming with a lawyer.

The second is what you and your spouse owe each other. That is decided by agreement or by a court under family law. How an agreement between you affects a lender depends on the loan terms and your situation, which is why protecting your credit matters so much and why a lawyer can help you confirm where you stand.

Common debts and how to think about them

This table is a general guide only. Your contracts may say something different, so read them or ask a lawyer.

How property division fits in

Under The Family Property Act, 'spouse' includes an unmarried person who is cohabiting or has cohabited with another as spouses continuously for not less than two years. The Act applies to married spouses and to unmarried spouses who cohabited continuously for two years or more.

Family property is distributed equally between spouses unless the court finds an equal distribution would be unfair and inequitable. The court considers factors including any written agreement between the spouses and how long they cohabited. For the family home, the test for an unequal split is stricter.

Certain property, such as property owned before the relationship, gifts from third parties and inheritances, can be exempt, but the exemption does not cover the family home and household goods. How a particular debt is counted when property is divided depends on the Act and on your facts, so ask a lawyer how your mortgage, car loan and credit cards would be treated.

Support can affect who can afford the bills

Day-to-day bills may be easier to manage with support. For divorcing spouses, a court may order lump-sum or periodic spousal support as it thinks reasonable, considering each spouse's condition, means, needs and circumstances. Child support orders must be made in accordance with the applicable guidelines. Special or extraordinary expenses such as child care, health and education are shared in proportion to the spouses' incomes.

What to do next to protect your credit

• List every account, loan and card, noting whose name is on each and the current balance.
• Keep paying at least the minimum on joint debts so that late payments do not hurt both credit reports.
• Ask lenders about freezing joint credit lines and removing a name where that is possible.
• Change passwords and direct deposits, and open an account in your own name.
• Order your credit report and check it for accounts you did not know about.
• Keep statements, receipts and a record of who paid what after separation.
• Put any agreement about debts in writing, and have a lawyer review it.

If a dispute ends up in court, know that since July 1, 2022, family law matters coming to court anywhere in Saskatchewan are required to attempt a family dispute resolution process by the close of pleadings before continuing with further court proceedings. You can apply to the court for an exemption where there has been interpersonal violence, the other parent has abducted a child, or there is other urgency.

If you are worried about your safety, getting help comes before finances. Talk to a lawyer about the right steps for your situation.

Frequently asked questions