Separating in New Brunswick

[peacefulrez]

Hello. I'm from New Brunswick and am quite glad this site exists because my on-again, off-again partner and I are are very confused on what is "law" and what isn't. We've had a fairly peaceful separation until the one last item came up (her student loan).

We do not have any kids together. Only lived in apartments and bought a house 5 years ago (now sold).

2002-2004 - J and I rented together
2004 - bought the house the 3rd year
2005 (Jan) - separated
2005 (Mar) - I moved out, new relationship (house for sale, not sold)
2005 (Jul) - I moved back with J into the house
2009 (Sep) - peacefully separated (living together as house sold)
2009 (Dec) - offer on house,
2010 (Feb) - house offer closed and signed,

In the fall we agreed to split all debts, bills, income 60/40 because I contributed more financially. Last month we looked at our incomes in more detail and found out that the ratio should have been 55/45 and re-agreed to that. 1 week later J asked me to take on her student loan (55%) because she had been going to school during our first 2 years together (she had previously agreed to keep it when we decided on 60/40).

She used this loan for school and to pay her share of our living expenses back then. My student loans were paid for by then and I contributed to living expenses through my salary.

Our debts are:
- joint line of credit,
- my line of credit,
- each have a credit card,
- joint vehicle,
- mortgage penalty
- taxes (personal and business)
- her student loan???

We agree that all items are joint debts because we both used them for joint travel and purchases.

We disagree on the student loan...

Any help or direction??

[billm]

Seems simple to me - who will benefit from the student loan - she will, she supported herself and her education with it, from which she benefits and you do not, therefore she should pay for it.

UNLESS she helped pay for your student loans, then perhaps you should reciprocate. Simple.

[peacefulrez]

She never contributed to my student loan. We had an agreement that we pool all income (bonuses, salary, freelance work...) and gave ourselves a weekly allowance to spend as we wished. 3 years ago she won a vehicle through her party-plan business. We sold it and used the profit towards joint debts. She is now suggesting that that should have just been hers and therefor it would have eliminated her loan. We had both been paying on all bills (including her student loan) while together. I'm not sure how this would be seen legally? I feel like the salary I contributed to living expenses (while she was in school) counters her student loan that she used to cover living expenses. So it's almost as if I'm paying her back for her share of the living expenses way back when.

[NBDad]

Usually you take whatever proceeds from the sale of joint assets (in this case the house) and pay off the JOINT debts. Anything left over is split.

Anything that was accrued (asset OR debt wise) prior to the relationship is the responsibility of the person whose name it is in. Where you're going to run into possible issues is that you indicate you separated in Jan of 2005, but it appears you reconciled 7 months later.

The joint vehicle will also have to be dealt with. One of you will need to buy the other out, you'll need to sell it and consider the cash as a joint asset, or you will need to equalize it's value (by taking less from the proceeds of the house/etc)

You are ONLY potentially on the hook for a percentage of the "living expenses" portion of the student loans, the payments include several items, such as tuition, books, travel and living expenses. You benefited from the living expenses portion, nothing else.

I'm also in New Brunswick, going through a divorce and that's what I was told.

[peacefulrez]

Thanks for the info. I've received similar advice and it looks like I'll have to go the way of the lawyer...it's unfortunate, but I really don't want to take on $10k+ of debt that's not really mine.

[dadtotheend]

Well I guarantee that you if let the lawyers sink their teeth into you, you both will be spending way more than $10K each.

Offer to give up something on the student loan, just to keep you both nice and civil to each other. It beats the financial and emotional alternative.

[peacefulrez]

Thanks for the info! I'm going to have a lawyer review the case just to be sure. My gut just says "NO" to all of this.