When Am I Responsible For Spouse’s Credit Card Debts?
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When Am I Responsible For Spouse’s Credit Card Debts?
Navigating credit card debt with your spouse can be tricky. You want to support your partner, but also protect your own finances. So when are you legally responsible for your spouse’s credit card debt? Let’s break it down.
If It’s Their Solo Account
If the card is solely in your spouse’s name, you are generally not liable for that debt. Your spouse took on that credit obligation alone, so it remains their responsibility. However, creditors could go after marital assets to settle that debt. If you have joint bank accounts or own a home together, they may be able to access those funds.
If You’re A Joint Account Holder
Now things get more complicated. If you and your spouse jointly hold a credit card account, you are both fully responsible for that debt. The credit card company can pursue either of you to repay the full amount owed.
Being an authorized user on your spouse’s credit card does not make you liable for the debt. You are simply allowed to use the card, but did not enter into the credit agreement. Your spouse retains full financial responsibility.
If You Live In A Community Property State
The rules change if you live in a community property state. Debts incurred during the marriage may be considered shared marital debts. Community property states include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.
If You Divorce
During divorce proceedings, credit card debt will be divided according to your settlement agreement. The court may order you to pay off a portion of the debt. If you fail to do so, your ex-spouse could sue you for violating the court order.
If Your Spouse Dies
Generally, you are not responsible for your deceased spouse’s credit card debt. Their estate typically pays outstanding debts first before distributing assets to heirs. However, if you were a joint account holder, you remain liable for that shared debt.
Strategies To Protect Yourself
- Maintain separate credit card accounts after marriage.
- Close joint accounts and open individual accounts.
- Remove yourself as an authorized user.
- Consult a lawyer about a postnuptial agreement.
Navigating credit card debt with your spouse requires open communication and clear agreements. Understand when you may be responsible for debts incurred and take steps to protect your own credit.
Sources:
- https://www.bankrate.com/finance/credit-cards/liable-for-spouses-credit-card-debt/
- https://www.cnet.com/personal-finance/credit-cards/advice/am-i-responsible-for-my-spouses-credit-card-debt/
- https://www.lendingtree.com/personal/pay-off-my-spouses-debt/
- https://money.usnews.com/credit-cards/articles/are-you-liable-for-your-spouses-credit-card-debt
- https://www.nolo.com/legal-encyclopedia/am-i-liable-my-spouses-credit-card-debt.html
- https://www.consumerfinance.gov/ask-cfpb/am-i-responsible-for-my-spouses-debts-after-they-die-en-1467/