Divorce & Separation
Paying Down Family Debt After Separation in BC
By SiLaw Group Family LawyersPublished Nov 13, 2026 · 6 min read
In BC, family debt is shared equally unless an agreement or order says otherwise, and it is valued when the division happens, not at separation. Payments one spouse makes after separation change the number both spouses divide. The Family Law Act offers no automatic credit, but it offers tools.
SiLaw Group Family Lawyers hears this question often. One spouse stays in the house and pays the mortgage, or one spouse keeps paying the joint line of credit while the other stops, and both want to know how that gets squared up. This post follows the Family Law Act through that question. For what counts as family debt in the first place, and why your deal with each other does not bind the bank, start with our family debt page.
What Counts as Family Debt After Separation?
Section 86 of the Family Law Act defines family debt as all financial obligations incurred by a spouse during the period beginning when the relationship began and ending when the spouses separate, and, after the date of separation, obligations incurred for the purpose of maintaining family property. Under section 81 of the same Act, spouses are equally responsible for family debt on separation, subject to an agreement or order that provides otherwise.
So a mortgage, a line of credit or a credit card balance that existed at separation is family debt whoever signed for it. New borrowing after separation is generally that spouse's own, with one exception. Money borrowed after separation to maintain family property, such as a loan to cover repairs, insurance or property taxes on a home that is waiting to be sold, can be family debt too. That exception is about new borrowing. Payments made on existing debt after separation are a different question, and the Act answers it through valuation.
When Is Family Debt Valued?
Section 87 of the Family Law Act says that, unless an agreement or order provides otherwise, the value of family property and family debt must be determined as of the date an agreement dividing them is made, or the date of the hearing before the court respecting the division. The balance that goes on the dividing ledger is the balance at resolution, not the balance on the day you separated.
Follow that through. Suppose the mortgage stood at one figure on the separation date, and one spouse alone made every payment for the next year while the file was negotiated. Under the default rule, the debt the two of you divide is the lower balance at the date of the agreement or hearing. The paying spouse's money has reduced a debt that both spouses share, and the Act, read on its own, treats that reduction as a change in the family debt rather than as a loan from one spouse to the other. Our valuation dates page explains the same floating date for property, where it cuts the other way as values rise.
Does the Paying Spouse Get Credit?
Nothing in the property division part of the Family Law Act gives an automatic credit. What the Act provides are three routes by which the payments can be taken into account.
By agreement. Section 92 of the Family Law Act lets spouses agree to divide family debt equally or unequally, and to value family property or family debt differently than section 87 would. Spouses can agree to fix balances as of the separation date, or to add an adjusting payment for post-separation contributions, and record it in a separation agreement. In our practice this is the usual route, and it works because both spouses can see the payments on the statements.
By unequal division. Section 95(1) of the Family Law Act lets the Supreme Court of British Columbia order an unequal division of family property or family debt if an equal division would be significantly unfair. Among the factors the court may consider, section 95(2)(f) names whether a spouse, after the date of separation, caused a significant decrease or increase in the value of family property or family debt beyond market trends. Section 95(2)(d) asks whether the debt was incurred in the normal course of the relationship, and section 95(2)(e) looks at each spouse's ability to pay where family debt exceeds family property. Those are considerations, not entitlements, and the threshold is significant unfairness, not ordinary unfairness. Our unequal division page explains how high that bar sits.
By order allocating the debt. Section 97(2)(h) of the Family Law Act lets the court declare that one spouse is responsible for payment of an item of family debt and must indemnify the other spouse for it, and section 97(2)(i) lets it order the sale of property to pay an item of family debt. Those orders sort out who carries a debt going forward. They are the mechanism through which any adjustment for past payments is actually implemented.
None of this says how the payments on your file will be treated. It says where the argument lives.
What About the Home One of You Still Lives In?
The spouse who stays usually pays the mortgage, and the spouse who leaves usually pays rent somewhere else. Both of those facts belong on the table, and the Act keeps them separate from ownership. An order for exclusive occupation under section 90 of the Family Law Act is made for a specified period and does not grant a proprietary interest in the home. Who pays the carrying costs during that period is a matter for an interim arrangement, written down, that says what is being paid, by whom, and how it will be treated at the end. Our family home page covers occupation, buyouts and sales, and our post on what happens to the house in a BC divorce walks through the choices.
Does Your Arrangement Change What the Bank Can Do?
No. Section 82 of the Family Law Act says nothing in the property division part affects the rights and remedies of a spouse's creditors, guarantors or assignees in relation to family debt. Section 97(3) of the same Act adds that an order about family debt applies only as between the spouses and does not affect an agreement between a spouse and any other person. If both names are on the mortgage or the card, the lender can look to either of you, whatever you agree or whatever a court orders. That is why debt terms in a good settlement include refinancing deadlines and the closing of joint credit, points our guide to separating your finances walks through.
What Records Should You Keep?
The valuation rule rewards the spouse who can show two snapshots and everything in between.
- statements for every debt as close to the separation date as possible
- proof of each payment made after separation, with the account it came from
- a note of what any post-separation borrowing was for, since only borrowing to maintain family property is family debt under section 86 of the Family Law Act
- any interim arrangement about who pays what, in writing, even an email
- the date the agreement is signed or the hearing is held, since that is the valuation date under section 87 of the Family Law Act
Keep the two-year limit in view as well. Under section 198 of the Family Law Act, a spouse must start a proceeding to divide property or family debt no later than two years after the divorce judgment or nullity order for spouses who were married, or two years after separation for spouses who lived in a marriage-like relationship, and the clock is suspended while the spouses are engaged in family dispute resolution with a family dispute resolution professional. Our property claim deadlines tool gives a first orientation. A spouse who pays faithfully for two years and then discovers the claim has expired has the worst of both worlds.
Talk to a Lawyer Before the Payments Pile Up
Post-separation payments are easiest to deal with while they are still being made, in an interim arrangement that both of you have signed. The first 30 minutes with SiLaw Group are free, by phone, video, or in person in South Surrey. Call (778) 381-9977 or Book Now for a Free Consultation.
This post is legal information, not legal advice. Rules and fees are current to the date of writing and can change.
About SiLaw Group
SiLaw Group Family Lawyers is a Surrey, BC firm practising family law and mediation. Founder Sandy Sihota is an accredited Family Law Mediator, Arbitrator and Parenting Coordinator (Law Society of BC). Articles are legal information, not legal advice.