New Brunswick Debt Division Calculator

New Brunswick uses equal division for marital debts under Section 2 of the Marital Property Act (RSNB 2012, c 107). Each spouse is responsible for 50% of debts incurred during the marriage for family support, education, or property acquisition. However, Section 9 allows courts to order a fair and equitable division when circumstances warrant unequal allocation. The Court of King's Bench Family Division considers factors including each spouse's financial situation and the purpose of the debt.

Under New Brunswick's Marital Property Act, you share responsibility for marital debts incurred during cohabitation regardless of whose name is on the account. Section 2 imposes on each spouse the burden of an equal share of marital debts. However, debts your spouse brought into the marriage or incurred for non-family purposes may be excluded. The key distinction is between legal responsibility to creditors (based on whose name is on the account) and court-ordered payment responsibility between spouses.

Credit card debt in New Brunswick divorce is divided based on when and why the debt was incurred. Cards used for family expenses during marriage are marital debts divided equally under the Marital Property Act. Joint credit card accounts make both spouses legally liable to the creditor for the full balance. Individual cards in one spouse's name are that person's legal obligation to the creditor, though courts may assign payment responsibility differently in the divorce settlement.

Student loans in New Brunswick are typically treated based on when they were incurred. Loans taken before marriage generally remain the individual spouse's responsibility as non-marital debt. Student loans acquired during marriage may be considered marital debt if the education benefited the family unit. Courts examine whether the degree increased earning capacity that supported the household. The Marital Property Act's definition of marital debts includes those for family support and education.

In New Brunswick divorce, the matrimonial home mortgage is typically handled by one spouse refinancing to remove the other from both the title and the loan. The spouse keeping the home must qualify independently for the mortgage at current interest rates. Canadian lenders allow refinancing up to 95% of appraised value to buy out a partner. Until refinancing occurs, both spouses remain legally liable to the lender regardless of what the separation agreement states about payment responsibility.

Yes, creditors can pursue you for joint debts regardless of your divorce decree. A New Brunswick court order assigning debt responsibility to your ex-spouse does not change your legal contract with the creditor. If your name is on a joint account, mortgage, or co-signed loan and your ex-spouse stops paying, the creditor can legally pursue you for the full balance. The only protection is closing joint accounts and refinancing loans into one spouse's name before or during the divorce process.

Medical debt in New Brunswick divorce follows the same principles as other marital debts under the Marital Property Act. Medical expenses incurred during marriage for either spouse or children are generally considered marital debts subject to equal division. Section 1 defines marital debts as those incurred for family support during cohabitation. If one spouse had significant pre-existing medical debt before marriage, it may be classified as non-marital and remain that spouse's individual responsibility.

Timing bankruptcy around divorce in Canada requires careful consideration. Filing before divorce can eliminate joint unsecured debts but transfers assets to the bankruptcy estate, removing them from property division. Filing after divorce protects property transferred through separation agreements from creditors, provided transfers are legitimate and not fraud. Support obligations (child and spousal) are not dischargeable in bankruptcy. Almost one in five Canadian insolvencies involves relationship breakdown, so consulting both a family lawyer and licensed insolvency trustee is advisable.