Marrying someone with bad debt | Debt Management (2024)

FAQs

What happens if you marry someone with bad debt? ›

Marrying a person with a bad credit history won't affect your own credit record. You and your spouse will continue to have separate credit reports after you marry. However, any debts that you take on jointly will be reported on both your and your spouse's credit reports.

If you know your partner is bringing significant debt into the marriage, consider taking steps to protect your financial health. For example, you may want to maintain separate accounts and work together to create a plan for paying down debt.

Consolidating debts in your name alone

While consolidating multiple debts into a single loan may hurt your credit (assuming the old accounts close, causing the average age of your accounts to drop), it shouldn't impact your spouse's credit. There is one major caveat: community property states.

Marrying someone with poor or damaged credit does not affect your credit scores. But if you and your spouse plan to seek credit jointly, their low credit score could affect your ability to get a loan, or lead to higher interest charges than you'd get if you applied yourself.

Typically, your DMP should not affect your partner's credit rating unless you have a financial association with them, such as a joint loan or mortgage. In these cases, reduced payments might appear on your partner's credit file, potentially impacting their credit score​.

“Debt can put a big strain on a marriage,” Dearing says. “Legally, you're not liable for debt your spouse had before you got married. But once you're married, you will likely be involved in paying off your spouse's debts. That's why it's important to be open with about how much you owe before you get married.

In a study of more than 4500 married couples, researchers saw that couples who took on more debt over time became more likely to split up. Couples with higher debt also fought more about money and reported lower marital satisfaction.

If either or both of you carry considerable debt, it's time to make a plan for paying it off. One spouse's premarital debt does not automatically become the other's upon signing a marriage license, but that debt can still affect you after marriage, as it affects your joint expenses.

Financial infidelity is a term many people are not familiar with, but it can have serious consequences in marriages and relationships. Financial infidelity occurs when one partner hides or misrepresents financial information from the other, such as keeping secret bank accounts or hiding purchases.

However, one thing you might not look forward to sharing upon marriage is each other's debts. Any assets or debts you enter a marriage with are considered your own separate property forever, unless you commingle them with shared funds or add your spouse to the account.

How do I protect myself from my husband's debt? ›

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.

In a community property state, creditors of one spouse can go after the assets and income of the married couple. This ability is powerful because most debts incurred during marriage are joint debts, regardless of whose name is on the title (in most community property states).

No, you don't. Any debts either spouse had before marriage remain their own responsibility, with one notable exception. If you cosign a loan for your significant other or open a joint account on a credit card before you officially tie the knot, you're both responsible for the debt after your marriage date.

You don't have to combine your credit when you marry. For instance, apply for credit by yourself instead of applying for joint credit after you're married. You can have separate "associate" cards issued for your spouse to use. Even if your spouse has bad credit, your credit rating will remain unaffected.

If debt is incurred in the course of the marriage, it could be considered a community debt for the benefit of the marriage for which you would be held liable too. However, if you are separated from your spouse and they then proceed to rack up debt, you wouldn't necessarily be held responsible for such debt.

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.

What Happens to Debt When You Get Married? Any debt each party may have before marriage remains separate unless the spouse is added as a co-signer. In this case, the so-signer may be liable if the debt is not repaid.

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.

Am I responsible for my partner's debts? You are not responsible for your partner's debts just because you live together. You are only responsible for debts that you have agreed to pay. This means debt that is in your name or if you signed an agreement saying you will pay.