The significance of a cohabitant’s income for attachment of earnings from a debtor’s salary

A cohabiting couple had shared their common housing and living expenses equally. When issuing an attachment of earnings order against one cohabitant's social security benefits, the Enforcement Authority proceeded on the basis that the other cohabitant, who earned more than the debtor, was able to cover a larger share of the expenses necessary for reasonable maintenance. It therefore considered that the attachment of earnings could be set at a higher monthly amount.

The issue in the case was whether the cohabitant’s income could be taken into account in this manner when determining the amount of the attachment of earnings under section 2-7 of the Creditors Recovery Act.

The majority of the Supreme Court concluded that the cohabitant’s income is a relevant factor in the overall assessment of the amount of the attachment of earnings in the individual case. However, the assessment must be made based on the specific circumstances and the actual allocation of expenses before the attachment of earnings is imposed. The Creditors Recovery Act does not permit a general allocation of expenses based on the relative incomes of cohabitants. Nor does the Act provide a basis for generally interfering with cohabitants' agreed or actual expense-sharing arrangements. Unlike spouses, cohabitants are not subject to a legally established mutual duty of maintenance.

The District Court and the Court of Appeal had based their decisions on a correct interpretation of section 2-7 of the Creditors Recovery Act, and the appeal was therefore dismissed.

The minority concluded that the Court of Appeal’s order was based on an incorrect interpretation of the law and should be set aside. In the minority’s view, the Act prescribes a specific assessment of reasonableness. The cohabitants’ agreement is not necessarily decisive as to what is reasonable.

The order clarifies what may be taken into account on the income side of the assessment under section 2-7 of the Creditors Recovery Act in cases involving cohabitants.

Area of law: Enforcement of claims. Attachment of earnings.

Key paragraph: 58.

Justices: Webster, Steinsvik, Steen, Horn, Heggberget.