Disputing a joint debt
Joint debts can get complicated when circumstances change — here's how liability and disputes usually work.
This guide helps you
- Understand how liability works on a joint debt
- Know the difference between a co-borrower and a guarantor
- Learn how to dispute an amount on a joint account
- Handle separation or a falling-out fairly
- Find free help to sort out your position
8 min
What's happening
A joint debt is one taken out by two or more people together. Often each person can be held responsible for the whole debt, not just their "share" — so if one person stops paying, the lender may pursue the other. This becomes complicated after separation, a business breakup, or when one person says the debt isn't really theirs. You can still dispute amounts and how the account is run. This is general information, not legal advice.
Your first steps
- Work out your role — joint borrower, guarantor, or an authorised user only.
- Get a copy of the agreement and recent statements.
- Don't ignore demands — silence can lead to action against you.
- Keep your own records of what you've paid.
Step by step
- Confirm the type of liability on the account.
- Dispute any incorrect amount in writing, with your evidence.
- Tell the lender about changed circumstances (e.g. separation) and ask about options.
- Get advice before agreeing to take on or release a share of the debt.
- Escalate to free external dispute resolution if the lender won't engage fairly.
What evidence helps
Gather the joint loan or credit agreement, statements showing payments by each person, and anything about who agreed to what. If you only ever guaranteed the debt or were an authorised user, evidence of that matters. Terms like "joint and several liability" are explained at directory.merion.com.au/glossary.
Where to get free help
Joint debts after separation can be tricky, so free advice helps — call the National Debt Helpline on 1800 007 007 or contact a community legal centre. If the lender won't treat you fairly or the amount is wrong, you can escalate to a free external dispute resolution scheme such as AFCA. See directory.merion.com.au/bodies.
Key takeaways
- On many joint debts, each person can be liable for the whole amount
- Confirm whether you're a borrower, guarantor or authorised user
- Dispute wrong amounts in writing and report changed circumstances
- Get free advice before agreeing to take on or release a share
Frequently asked questions
Am I only responsible for half a joint debt?
Often not — many joint debts make each person liable for the whole amount. Check your agreement and get free advice on your position.
We've separated — what about our joint debt?
Tell the lender, keep paying what you can, and get advice. A property settlement is separate from your liability to the lender, so don't assume it's resolved.
Can I dispute the amount on a joint account?
Yes. Dispute any incorrect charge in writing with evidence, and escalate to a free external dispute resolution scheme such as AFCA if needed.
This is general information, not legal or financial advice. Your situation is unique and rules can vary by state and over time — for advice on your circumstances, speak to a free financial counsellor (National Debt Helpline 1800 007 007) or get legal help.
Know your options, know your rights
A free, plain-English guide to dealing with debt in Australia — and the people who can help.