We have a joint car loan and business loan. Are debts taken into account in harta sepencarian?

Yes, debts incurred for joint benefit are taken into account by the court. Act 303 s.122(2)(b) lists any debts owed by either party that were contracted for their joint benefit as one of the matters the court must consider, alongside the extent of contributions and the children's needs. This means the net value of an asset, after related debts, matters more than its value on paper. Prepare loan statements, financing agreements and records of who paid each monthly instalment. Personal debts unrelated to the family are usually assessed differently; ask a Syariah lawyer about the facts of your case. Islam encourages debts to be recorded clearly: “O ye who believe! When ye deal with each other, in transactions involving future obligations in a fixed period of time, reduce them to writing” (Surah al-Baqarah 2:282).