Am I Responsible for My Spouse’s Debt? | LendingTree (2024)

FAQs

Am I Responsible for My Spouse’s Debt? | LendingTree? ›

If you get divorced, your legal responsibility for your spouse's debt will depend on the state laws — whether you live in a common or community law state — and any prenuptial agreements you signed. If you served as a cosigner or co-borrower, you will be responsible for those debts regardless of where you live.

But creditors do have recourse to your spouse's share in any assets that you own jointly with them. So, even though they can't force you to pay for your spouse's bills, they can target assets that you both own to make up for it. And if you are part of a joint credit card account, both of you will be liable.

If you live in a community property state, you probably will be responsible for debts accumulated by your spouse during the marriage. (These states are California, Texas, Arizona, New Mexico, Nevada, Washington, Idaho, Wisconsin, and Louisiana, while Alaska, South Dakota, and Tennessee make it optional.)

Since California is a community property state, the law applies that the community estate shared between both individuals is liable for a debt incurred by either spouse during the marriage. All community property shared equally between husband and wife can be held liable for repaying the debts of one spouse.

In general, spouses are not responsible for each other's debts. However, there are certain situations where a spouse may become liable for their partner's debt. This occurs when the spouse willingly agrees to be personally responsible for the debt, such as by co-signing a loan or jointly opening a credit account.

You can protect yourself from your spouse's debt by signing a prenuptial agreement before you get married and avoid taking out joint credit. It's especially important to protect equity in your home during a divorce to ensure you get your fair share, since this is likely the largest asset you have.

Am I responsible for my husband or wife's debt? Being married to someone doesn't mean you inherit their debts. If you don't have joint finances, like a mortgage or joint bank account, then you can't be made liable. The same goes if you change your surname when you get married.

Most states use common law (also known as equitable distribution), which dictates that married couples don't automatically share personal property legally. In other words, you aren't responsible for your spouse's debt unless you took it out together as a joint account, or you cosigned on it.

In almost every case, you will not be held responsible for debt your spouse has incurred before your marriage. The only exception to this rule is if you become a joint account holder after marriage.

In general, you're not responsible for repaying the debts of a deceased spouse. But there are some exceptions — for example, you must continue paying any joint debts. And you could be responsible if you're listed as the executor of your deceased loved one's estate.

Can a debt collector go after my spouse? ›

A debt collector can contact your spouse. A debt collector can contact your parents or guardian if you are under 18 years old or live with them.

If there's no money in their estate, the debts will usually go unpaid. For survivors of deceased loved ones, including spouses, you're not responsible for their debts unless you shared legal responsibility for repaying as a co-signer, a joint account holder, or if you fall within another exception.

Financial infidelity happens when you or your spouse intentionally lie about money. When you deliberately choose not to tell the truth about your spending habits (no matter how big or small), that is financial infidelity.

You are generally not responsible for someone else's debt. When someone dies with an unpaid debt, if the debt needs to be paid, it should be paid from any money or property they left behind according to state law. This is called their estate.

The relevant information to focus on here is that California is a community property state, which means that legally married couples jointly own everything – including debt. As a result, it is possible for a creditor to garnish a spouse's bank account if their spouse owes a debt.

The Judgment Creditor may make a MOTION FOR AN ORDER TO GARNISH NON-DEBTOR SPOUSE'S WAGES to the court where the Judgment is entered. THIS MUST BE A NOTICED MOTION. [CCP 706.109].

Most states use common law (also known as equitable distribution), which dictates that married couples don't automatically share personal property legally. In other words, you aren't responsible for your spouse's debt unless you took it out together as a joint account, or you cosigned on it.

If you act as guarantor or co-sign an obligation with a primary debtor, then yes, you will also be liable on that debt obligation you co-signed.

The bottom line

In general, you're not responsible for repaying the debts of a deceased spouse. But there are some exceptions — for example, you must continue paying any joint debts.

Generally, after a divorce is final, the only party responsible for a debt is the party who incurred that debt unless it was used for joint property. For more help with figuring out divorce and debt, consider working with a financial advisor.