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See how debt factors into a simplified equalization estimate — debts reduce net worth just as assets increase it.
Estimate only — not legal advice. A full equalization also accounts for date-of-marriage values and exclusions.In Ontario, debts are factored into the equalization of net family property rather than divided directly. Each spouse's debts on the separation date reduce their net family property, and debts that existed on the marriage date are added back — so a spouse who brought debt into the marriage and paid it down can be credited. Whose name a debt is in does not decide who ultimately bears it; the equalization payment balances the overall growth in each spouse's net worth. Common-law partners keep their own debts.
Debts factor directly into equalization, just as assets increase net worth.
A creditor can pursue either joint debtor for the full amount, regardless of a separation agreement.
You're generally not liable for your spouse's solely-held debt to a creditor, though it still affects their NFP.
Debt you had on the date of marriage is generally deducted, similar to premarital assets.
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