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.
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.
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.
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.
Don't assume you have to pay
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.
In some states, even if you have separate bank accounts, a creditor can also garnish your separate account to pay for your spouse's debt. However, other community property states provide an exception to the rule as long as your spouse doesn't make any deposits or withdrawals from your separate account.
Fortunately, most states are not community property states so your spouse cannot be pursued for your debts. Currently, there are only nine community property states in the United States: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
Your spouse's debt before the marriage does not impact your credit score, at least not directly. However, once you marry and agree to a joint credit card account, or an account where you were added as an authorized user, it will impact your credit score.
Key Takeaways. Financial infidelity is when couples with combined finances lie to each other about money. Examples of financial infidelity can include hiding existing debts, excessive expenditures without notifying the other partner, and lying about the use of money.
Additional examples of unsecured debt include medical debt and most types of credit card debt. If you die with unsecured debt, repayment becomes the responsibility of your estate. Your legal estate refers to all the assets, property and money left behind by you or another deceased person when they die.
Are married couple's responsible for each other's debt? Married couples can be responsible for each other's debt in certain circumstances, such as if the debt was incurred during the marriage in a community property state or if the debt was cosigned for or accrued with a joint credit card, among others.
In most cases, the deceased person's estate is responsible for paying any debt left behind, including medical bills. If there's not enough money in the estate, family members still generally aren't responsible for covering a loved one's medical debt after death — although there are some exceptions.
Yes, it's possible for someone to fraudulently take out a loan in your name without your knowledge. This is known as identity theft.
Can You Sue Your Spouse for Financial Infidelity? You may have a civil case against your spouse for misusing marital funds or joint accounts without your consent. An attorney can review your options based on state laws and the specific circumstances.
A mortgage lives on after the death of the borrower, but unless there is a co-signer or, in community property states, a surviving spouse, none of the deceased person's heirs are responsible for paying the mortgage. Those who are in line to receive an inheritance may be able to take over payments and keep the house.
And the bottom line is this: In most cases, once you are joined in marriage, the debt of your partner becomes shared debt, not just in the moral sense, but legally, as well. That won't change if you prepare for divorce.
Credit histories and scores don't combine when you get married. Your credit history and scores are yours and yours alone, and your marital status is not included in your credit reports. But if you have a shared account or you're an authorized user of your spouse's account, you could affect each other's scores.
If your spouse is sued, courts and creditors can't go after property that they don't legally own. Since separate property is entirely yours, they won't have a legitimate claim. Your property will be safe from your spouse's debts.
The ability to garnish an account depends on multiple factors. The ability of a creditor, or debt collector, to garnish your spouse's bank account depends on multiple factors, including the type of account your spouse uses, the nature of the debt, and the state in which you and your spouse reside.
Only Nine States Still Allow New Common Law Marriages
To be exact, as of 2020, only eight states still allow common law marriages to be formed in them. An additional five states allow common law marriages, but only if those marriages were formed before a specific date (meaning new common law marriages are allowed).
Bank accounts solely for government benefits
Federal law ensures that creditors cannot touch certain federal benefits, such as Social Security funds and veterans' benefits. If you're receiving these benefits, they would not be subject to garnishment.
Even if you yourself did not do anything wrong, or you were unaware of any wrongdoing by your spouse, you are still 100 percent legally responsible for your shared tax debt. If you file separately in a year when your spouse incurred tax debt, you're not responsible for it.
You and your spouse each have your own separate credit files. Only accounts that are in both your names will show on both of your credit files. This would include any joint accounts you have, as well as accounts for which either of you are a co-signer or an authorized user.
Generally, in the case of an auto loan the debt follows the underlying property, meaning the spouse who gets the car in the divorce is the one who will be responsible for paying the loan.