Love and Money .... and Your Partner's Debt

LOVE AND MONEY... AND YOUR PARTNER’S DEBT
Taking on someone else’s financial burdens can
cause a lot of strain in a relationship and also to you personally. If you’re looking at stepping into this “slippery
slope”, feeling that you’re the only “saviour” to your partner’s situation, you
need to be aware of the “ins” and “outs” of doing so.
If you are in a new relationship and your partner persuades you to act as a “guarantor” for their business or other loans, it’s very important you understand exactly what debt(s) your new partner has and that you have a very clear understanding at each stage, if you are being made liable for any borrowing being proposed.
A guarantor (also known as a surety) is a person who becomes responsible for someone else's debt (known as the principle debtor) when that person is unable to make payment of a debt. A guarantor may agree for a debt in its entirety, or only a portion of the debt.
If there’s no transparency and/or you simply don’t understand what obligations and risks there are ... then don’t do it. Our friendly team at Ward Adams Bryan-Lamb, Solicitors, Invercargill can help you understand your obligations.

