In most cases, a debt you incurred on your own — in your name only — is your responsibility, not your partner's or spouse's. Australian law does not automatically make a spouse or de facto partner liable for the individual debts of the other. However, there are important exceptions.
When a partner may be responsible:
- Joint liability — if you and your partner signed the contract or credit agreement together, or if the account is in both names, both of you are liable for the full amount. This applies to joint loans, joint trade accounts, and jointly signed agreements.
- Personal guarantee — if your partner signed a personal guarantee for the account — even if the debt is primarily yours — the creditor can pursue them under that guarantee.
- Partnership or sole trader — if the debt arose from a business operated as a partnership between you, both partners are jointly and severally liable. If your business is a sole trader operating under your name, the debts are personal regardless of whether your partner is involved in the business.
When a partner is not responsible: A debt in your name alone, with no joint agreement or guarantee, is your obligation only. A partner does not become liable simply because you are married, in a de facto relationship, or share finances informally.
If you are uncertain about the basis on which a debt is being pursued, you are entitled to ask for clarification. See the article on requesting proof of the debt, or contact us directly.
Was this article helpful, or still not sure? Our team is happy to talk it through.