Debts and common-law relationships

Debts can sometimes be a problem, both during a relationship and when it ends. If you're aware of the basic legal rules about debts, you can protect yourself by knowing what you're getting into.

If you sign a loan, it's your loan, and it's your responsibility to pay it back. If your partner signs a loan, it's your partner's responsibility. However, if you both sign, either of you can be held responsible for the entire debt.

That's probably obvious to you, but look at the problems you might face if you have a joint loan. For example, say your partner isn't working, but wants to buy a truck. Although you won't be using the truck, you co-sign the loan. If you separate and your ex-partner leaves with the truck, or simply fails to make the payments, the bank will make you pay. You may be totally responsible for paying for something you don't even have.