marital debt

[RLS]

Hi all,

I'm in this time on behalf of a family member. Their spouse has fallen for someone else - 16 years and 4 kids later.

My question is, Dad leased a family vehicle that has not yet been paid off and Mom is claiming she has no responsibility towards that debt, because Dad's name only is on the lease.

Please correct me if I'm wrong...

Neither Mom nor Dad had any debt prior to the marriage. So both Mom and Dad would first total their own individual debt, meaning debt with only their name on it. Then they would each add to their own debt, 50% of the marital debt, meaning anything with both their names on it AND 50% of the marital home debt. Then whatever the difference is between the two amounts, the spouse with the higher asset total has to pay out the difference by whatever means they agree on, to equalize the debt.

Or am I wrong and Dad is solely responsible for the debt on the car too?

Thanks in advance.

 

[dinkyface]

CanLII - 2015 ONSC 2543 (CanLII)

"a car lease is not an asset and cannot be included in the equalisation of family property calculation. In fact the car lease is a debt and debts do not constitute either property or assets under the Family Law Act and cannot be included, as such, in the equalisation of family property calculation: Powers v. Naston-Powers 28 R.F.L. (3d) 60 (Ont.H.C.J.)"

 

[RLS]

CanLII - 2015 ONSC 2543 (CanLII)

"a car lease is not an asset and cannot be included in the equalisation of family property calculation. In fact the car lease is a debt and debts do not constitute either property or assets under the Family Law Act and cannot be included, as such, in the equalisation of family property calculation: Powers v. Naston-Powers 28 R.F.L. (3d) 60 (Ont.H.C.J.)"

You're pretty awesome Dinkyface. Thank you. I just read the same thing myself elsewhere on line. Wasn't getting a clear answer from past posts on here.