Section 20E — Property (Relationships) Act 1976: Compensation for satisfaction of personal debts

20E Compensation for satisfaction of personal debts (1) If a secured or unsecured personal debt of 1 spouse or partner ( party A ) has been paid or satisfied (directly or indirectly) out of the relationship property, the Court may make 1 of the following orders in favour of the other spouse or partner ( party B ): (a) an order increasing proportionately the share to which party B would otherwise be entitled in the relationship property: (b) an order that property that is part of party A's separate property be treated as relationship property for the purposes of any division of relationship property under this Act: (c) an order that party A pay party B a sum of money as compensation. (2) The Court may make an order under this section on its own initiative, but must make an order under this section if party B applies for such an order. (3) This section applies whether the debt was paid or satisfied voluntarily or pursuant to legal process. Sections 20A to 20F were inserted, as from 1 February 2002, by section 20 Property (Relationships) Amendment Act 2001 (2001 No 5). See Part 9 of this Act as to the transitional and saving provisions. Subsection (1) was amended, as from 26 April 2005, by section 3(2) Property (Relationships) Amendment Act 2005 (2005 No 19) by substituting the word “ partner ” for the words “ de facto partner ” in both places they appear.