Debts on divorce: how spouses' credits are divided in Kazakhstan

Divorce in itself does not terminate credit obligations. The bank continues to demand payments from the person with whom the agreement was concluded, even if the family has broken up. The other spouse may be unaware of the debt for years, until they receive a notice from a debt collector or face the seizure of joint property.

The most costly mistake is to assume that all credits are divided in half automatically. In reality, the court first establishes what the money was spent on: the family or the personal needs of one spouse. This determines whether the other will have to pay. Below — how to distinguish a joint debt from a personal one, which evidence works and how to file a claim for division of debts in Kazakhstan.

Which debts are divided between spouses on divorce

Joint debts of spouses on divorce are obligations that arose during the marriage and were directed to the needs of the family: renovating an apartment, educating children, buying household appliances, medical treatment. It is such obligations that are distributed between the spouses, and the court determines which part of the debt remains with each. Under the legislation of the Republic of Kazakhstan, debts that arose during the marriage and were used for the needs of the family are considered joint.

Personal debts are not divided on divorce: those taken on before the marriage or spent not on the family remain with the spouse who took them out. In practice, the dispute is precisely about what the money was spent on. If a loan was taken out during the marriage but spent on the personal needs of one spouse, the other can prove this and be released from liability. That is why it is so important to gather evidence of targeted use in advance: receipts, bank statements, contracts.

Obligations can be divided in different ways. Most often this happens in court if the parties have not reached an agreement. The second option is to include a debt clause in a property division agreement, if the parties are ready to sign it.

• A loan to buy furniture or appliances for the shared flat is a joint debt
• A loan spent on the personal needs of one spouse is, as a rule, a personal debt
• A mortgage on shared housing is divided between the spouses
• A debt on a credit card taken out before the marriage is personal
• A loan for a child's treatment is a joint debt

A spouse's loan on divorce: when it is divided and when it is not

A loan taken out in one spouse's name does not always become a joint debt. The key criterion is what the money was spent on. If the loan was taken out during the marriage and spent on family needs, the spouse's loan on divorce may be recognised as joint, and the costs under it will be distributed between both. For example, a spouse took out a loan to renovate the shared flat or buy furniture for the family — the court may divide such amounts.

The opposite situation: the loan was taken out before the marriage or spent on personal purposes. Then the debt remains personal, and the other spouse has nothing to do with it. Example: the wife took out a loan for education before the wedding, or the husband spent borrowed money on his own hobbies — on divorce such a loan is not divided.

• The money went on shared needs — the debt may be recognised as joint.
• The loan was taken out before the marriage — it remains personal.
• The loan was spent on personal purposes — it will not be divided.
• A loan for one spouse's business is a debatable matter; evidence is needed.

A spouse's debts on divorce: how to prove they are personal

If you believe that your spouse's loan is their personal debt and should not be divided on divorce, remember: the burden of proving that the money went on family needs lies with the party seeking to have the debt recognised as joint. The court will recognise a debt as joint only if this is proven, but it is still better to back up your position with documents. A simple statement that "it is their loan, I have nothing to do with it" is not enough — confirmation that the money went outside shared needs noticeably strengthens your position.

The court will assess witness testimony from relatives and acquaintances critically if it is not supported by anything. Bank statements showing the movement of money and documents on targeted use — contracts, receipts, IOUs — carry far more weight.

The most costly mistake is to delay the proceedings and not gather evidence in advance. A spouse's debts on divorce are more often recognised as personal when there is confirmation of targeted use rather than assumptions. The following will serve this purpose:

• bank statements showing the movement of funds;
• testimony of witnesses who know about the spending;
• documents on the targeted use of the loan.

A claim to divide spouses' debts: how to file it and what to attach

A claim to divide spouses' debts is filed with the court at the defendant's place of residence — that is, the spouse against whom the claims are brought. If, after divorce, you want the court to determine what part of the loans falls to each of you, such a claim is essential. Even after a court decision, the bank still demands payments from the person in whose name the contract was concluded, and the other spouse reimburses them their share. The claim can be filed either at the same time as the divorce or afterwards — but within the three-year limitation period that applies to the division of the joint property of divorced spouses.

Attach to the application copies of the marriage certificate, loan agreements, and documents on income and expenses — from these the court will see where the borrowed money went. In the text itself, describe each loan, state the purposes for which it was taken out, and propose your own version of the division of debts on divorce. The more precisely you link the loan to family needs, the clearer it will be to the court which part of the debt should be treated as joint obligations. Prepare the documents in several copies: for the court, for the defendant and for yourself.

• Heading: "Statement of claim to divide debts"
• Introductory part: court, details of the parties
• Descriptive part: loans and their purpose
• Prayer for relief: how to divide each debt
• List of attachments and date, signature

Comparison of personal and joint debts on divorce

To understand how a court will divide spouses' debts on divorce, it helps to compare the features of a personal and a joint obligation. A joint debt arose in the interests of the family, a personal one did not. If a loan was taken for family needs, for example to renovate a shared flat, it will be included in the division. A debt taken out by one spouse for their own personal purposes remains with them.

Below is a table for quickly checking your situation. How to determine the category of a debt on divorce: look at what the money was spent on and who benefited. The answers will help you avoid mistakes when preparing documents and avoid including a personal obligation in the joint list. The outcome depends on the evidence you gather in advance.

Joint debts are divided in proportion to the awarded shares; personal debts are not divided and remain with the person who took them on.

Documents and evidence in the division of debts upon divorce

For the court, what matters decisively is not whose name the loan is in, but what the money was spent on and how the spouses conducted their joint affairs. Therefore, for a claim to divide debts upon divorce, it is worth gathering everything that confirms your version of the joint or personal nature of the obligation. The court takes into account loan agreements, receipts, IOUs, and witness testimony.

Documents are submitted in groups: first those confirming the debt itself and its amount, then those showing how the funds were spent, and then those showing your personal contribution or the absence of any family interest. If something has been lost, restore account statements from the bank, obtain a payment breakdown, and prepare witnesses with precise details of the time, amounts and circumstances. Prepare the documents on this list for the court:

• the loan agreement, the payment schedule and a bank statement of the outstanding debt;
• receipts, payment slips, IOUs and transfers showing where the money went;
• statements for the accounts and cards of both spouses for the disputed period;
• written explanations from witnesses with their contact details for summoning them to court.

What documents are needed for a claim to divide debts upon divorce

The list of papers for a claim to divide debts upon divorce depends on your situation, but the basic set is realistic to gather: the marriage certificate, loan agreements and evidence of what the borrowed funds were spent on. It is important for the judge to see not only the debt itself but also its connection to the family.

Below we have put the documents in a table so that you do not forget anything when preparing for the division of debts upon divorce. Tick the ones you have in hand and separately write out the ones you still need to obtain.

The list is not exhaustive: if necessary, the court may request other documents as well.

Even after the division of debts, the bank demands payments from the person who signed the contract: a court decision distributes the debt between the spouses, but does not change the borrower. If you have paid more than your share, the difference can be recovered from your former spouse. Therefore, in a claim for the division of property, state the debts at once, otherwise after the division of assets it will be much more difficult to divide the obligations.