Legal Updates

Being a Common-Law Marriage couple does not in itself make every debt a joint debt

May 8, 2025
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Several years after their separation, a spouse demanded that his ex-spouse repay half of the amount of the loans he had taken to finance joint debts.
The Court dismissed the claim because the common property presumption does not apply in this case. The common property presumption states that when a couple leads a normal joint lifestyle and joint effort, new property they create is their joint ownership, even if recorded in the name of one spouse or is in his sole possession, unless it can be clearly shown that there was a different intention. Accordingly, the spouse who benefits from the fruits of the partnership with his spouse must also bear the burden of the debts created during their life together. Here, there was an agreement that the spouse remained the sole owner of his rights and debts in his business and it is not clear whether the loan was taken to cover the debt of the separate business or joint debts. Therefore, the ex-spouse is not liable for half of the loan.

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