You are generally not responsible for your spouse's credit card debt unless you are a co-signor for the card or it is a joint account. However, state laws vary and divorce or the death of your spouse could also impact your liability for this debt.
Keep Things Separate
Keep separate bank accounts, take out car and other loans in one name only and title property to one person or the other. Doing so limits your vulnerability to your spouse's creditors, who can only take items that belong solely to her or her share in jointly owned property.
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.
Ask what you're willing to live with
It's important to find out how your partner feels about teamwork and you both taking a role in making sure responsibilities get met. If they really care about your relationship, they'll be willing to talk it over with you and find a compromise.
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 your spouse's credit card debt unless you are a co-signor for the card or it is a joint account. However, state laws vary and divorce or the death of your spouse could also impact your liability for this debt.
In common law states, you're usually only liable for credit card debt if the obligation is in your name. ... But keep in mind that if you have jointly owned assets, then the credit card company can still go after your spouse's interest in that property.
Generally speaking, a debt that is is your name is your responsibility alone. Your spouse's account cannot be garnished in most circumstances, although exceptions may apply if you share a joint account or if the expenses leading to the debt were used for their benefit.
In common law states, debt taken on after marriage is usually treated as being separate and belonging only to the spouse who incurred them. The exception are those debts that are in the spouse's name only but benefit both partners.
If an abusive partner (to whom you are not married) failed to re-pay money that you lent to him/her or failed to make credit card or loan payments that s/he agreed to, you may be able to take the abuser to small claims court to sue for that money.
Legally, debt brought into marriage is typically the responsibility of the person who incurred it. Some married couples choose to pay off separate debts together, but in the event of a divorce, remaining debt brought into the marriage will be owed by the spouse who incurred it.
Generally, one is only liable for their spouse's debts if the obligation is in both names. ... But, unless both the husband and the wife are on the credit card account (even if only as a co-signer), one spouse will not be held liable for the obligation of the other on that account.
There are four ways to open a bank account that is protected from creditors: using an exempt bank account, using state laws that don't allow bank account garnishments, opening an offshore bank account, and maintaining an account with only exempt funds.
If the home is owned solely by your spouse then the house will be sold by the Trustee. If the home is jointly owned (for example by a husband and wife as joint tenants), the joint tenancy is automatically severed upon the bankruptcy of any one of the joint tenants.
Credit scores are calculated on a specific individual's credit history. If your spouse has a bad credit score, it will not affect your credit score. However, when you apply for loans together, like mortgages, lenders will look at both your scores. If one of you has a poor credit score, it counts against you both.
All states today require husbands to provide necessities for their wives and children, and in many states wives face similar requirements. Debts incurred during marriage, especially for necessities, are normally considered joint debts, even if spouses are living apart but are not divorced.
Upon one partner's death, the surviving spouse may receive up to one-half of the community property. If there is no will or trust, then surviving spouses may also inherit the other half of the community property, and take up to one-half of the deceased spouse's separate property.
As part of the divorce judgment, the court will divide the couple's debts and assets. ... Generally, the court tries to divide assets and debts equally; however, they can also be used to balance one another. For example, a spouse who receives more property might also be assigned more debt.
Just like sexual infidelity, financial infidelity is a very serious breach of trust. If you are afraid to discuss any financial issue with your spouse, then what you are dealing with is larger than a financial problem, it is a relationship problem.
Am I Responsible for My Deceased Spouse's Debt? When your spouse dies, their debt survives, but that doesn't necessarily mean you're responsible for paying it. The debt of a deceased person is paid from their estate, which is simply the sum of all the assets they owned at death.
With household and utility bills, the person whose name is on the bill is legally obligated to pay. ... If you have separated, it is important to agree who will be paying the bills. If you are remaining in the family home, then it might be appropriate for the bills to be transferred into your name.
The basics. You are not legally responsible for your partner's debts unless they are joint debts or you have acted as guarantor. It doesn't matter whether you are living together nor whether you are married – one person is not responsible for another person's debts.