by tj  17/11/2012  178 Page Views
4 Comments  Family & de facto law, financial agreements, consent orders
I am not sure if there is any way out of this mess that a friend has got herself into as all debts are in her name and there are no assets of the relationship so nothing to sell or split. There are no children involved.

Background: They started to live together 3 years ago. They have rented and do not have any assets. They split the rent 50/50 and did not have joint bank accounts. Bills were generally split 50/50. I am not sure who paid for food etc.. So in effect although they were a couple, it is easy to claim that they were flatmate's only.
He works earning about $70 000 pa.
She was earning about the same until 6 months ago when she was retrenched and has so far only been able to secure part time work earning about $22 000 pa. She is looking for full time work but so far no luck.

He has poor credit and can not get loans. He also had significant gambling debts. She took a personal loan out in her name (stupid) to cover his debts. She can no longer service them on her reduced wage.
He had been paying the personal loan and her credit cards- items on the credit cards were for both of them eg: car regos, insurances on both cars etc...They both own their own cars but they are not worth a lot about $10 000 each.

They have now split- due to him running up more gambling debt and issues with alcohol/ drug abuse.

Is this just a case where she will have to suck it up and pay- possibly filing for Bankruptcy as she can not afford the repayments. He will not pay willingly because as far as he is concerned the debts are hers as they are in her name and as far as he is concerned they are finished as a couple.