Entangled assets: love, land, and loans in divorce settlements

The Supreme Court of Ghana’s decision in Peter Adjei v Margaret Adjei raises significant uncertainty regarding whether property acquired during marriage through a loan obtained by one spouse remains subject to equitable distribution where the loan remains outstanding. This article examines the relationship between indebtedness and matrimonial property rights, and whether the existence of unpaid liabilities may displace the presumption that property acquired during marriage constitutes matrimonial property for purposes of distribution upon divorce. Using doctrinal legal analysis of constitutional provisions, legislation, judicial decisions, and comparative jurisprudence, the article argues that excluding loan-financed property solely because of outstanding liabilities fails to distinguish between proprietary interests and financial obligations and may diminish the legal recognition of non-financial contributions within marriage. It recommends judicial clarification and legislative reform to ensure that indebtedness affects valuation and distribution rather than the existence of matrimonial property interests, in a manner consistent with constitutional principles of equality and non-discrimination.