Do You Inherit Your Spouse's Debt When You Get Married

A photo to accompany a story about spousal credit card debt

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If your spouse (or spousehoped-for) is struggling with credit card debt, you might be wondering if you're responsible for repayment. The answer depends on a few things, including where you lot live and whether you are a cosigner or have a joint account.

In a Fidelity written report conducted betwixt 2007 and 2018, more than half of married couples reported bringing debt into their relationships, and four in 10 respondents said it had a negative bear on on the spousal relationship. Your partner'southward debt — depending on the circumstances — could too potentially impact your credit score, making you question whether it's a good idea to have joint credit card accounts with your partner.

Here's what yous demand to know near managing debt as a couple.

What Happens if Your Spouse Has Credit Card Debt?

Mostly speaking, one person cannot be held liable to pay another adult'due south credit card debt — just this isn't true in every land.

There are nine states known as community property law states. These automatically assign ownership of debt to both spouses in a matrimony, whether for new assets (like a house or a machine) or new debt (like credit carte balances and mortgages).

"New debts that are incurred during the matrimony are often considered the responsibleness of both in customs property states," says Nathan Grant, an analyst at Credit Card Insider, a personal finance website.

Here are the nine community property states:

Arizona
California
Idaho
Louisiana
Nevada
New Mexico
Texas
Washington
Wisconsin

If you live in one of those states, you and your spouse will be jointly liable for most debts incurred during the spousal relationship. Exterior of these nine states, any avails or debts acquired only belong to that one spouse.

Also, the sum full of all shared debts and assets may be considered fair game in the event of a divorce. A estimate might divide the debt equally or proportionally, depending on what you and/or your legal counsel negotiate on your behalf.

Pro Tip

If you're worried about existence liable for your spouse's debt, consider a prenuptial agreement.

Outside of those circumstances, there's even so i more than situation in which you would be responsible for your spouse's debt: If you signed on equally a articulation account holder on a credit card, information technology's your responsibility to pay the debt on that carte du jour, even if you weren't the one making the purchases. "If my hubby signs upwards for a credit card and I sign besides for the same credit card acknowledging responsibility … I'm responsible for all the debt he racks up," says Gina McKague, financial planner and founder McKague Financial, a Michigan-based retirement planning business firm.

Authorized users are not held liable for repaying debt incurred on the main business relationship holder's carte du jour, though that debt may bear upon the authorized user's credit score (more on that below).

Do You Inherit Debt When You Get Married?

No. Even in community property states, debts incurred before the marriage remain the sole responsibleness of the private. So if your spouse is notwithstanding paying off student loans, for instance, yous shouldn't worry that you'll go liable for their debt after you lot get married.

If you signed upwards for a articulation credit card before getting married, then both spouses would be responsible for that debt. But the act of getting married doesn't cause you to inherit debt — signing up for a joint account is what makes the debt your responsibility.

Does Your Spouse's Debt Affect Your Credit Score?

There are 2 situations in which your spouse'due south debt would impact your credit score. The first is if you signed up for a joint account. In this example, you lot knowingly signed on to take responsibility for whatever debt incurred from purchases fabricated with the card. If you and your spouse pay your bills on time and proceed your balances depression, that credit menu volition positively impact both of your credit scores. On the other hand, if either of you miss payments or stitch a balance, both of your credit scores will have a hit.

Your spouse'due south debt can too bear upon your credit score if you were added as an authorized user to an account. This situation is more of a business organisation for couples because ane spouse might not realize they were added equally an authorized user, says McKague, something she's seen happen during a separation.

"If I'thou a user on the account, it likewise negatively impacts me with my credit score, fifty-fifty if I'k not actively using that card and fifty-fifty if I don't even know he put my name on," she says.

Most companies crave a Social Security number when calculation an authorized user, merely many don't. As a best practice, you lot'll want to go along an heart on your credit report any time you're an authorized user on anyone's credit bill of fare — including your spouse.

What If Your Spouse Passes Abroad?

Equally a general rule, no i is obligated to pay the debt of a person who has died, only in that location are a couple of exceptions.

In community property states, you'd be responsible for any debts incurred during the wedlock in the consequence your spouse dies. And in whatsoever state, if y'all opened a joint account with your spouse, you'd be responsible for that debt after their death. Across the board, authorized users are not responsible for a deceased cardholder'southward debt.

This is a good reason to continue credit card accounts separate when y'all're married, says McKague: "Legally speaking, in that location is no obligation. In most cases, I would tell spouses in a non-customs belongings state, for all intents and purposes, to but hold carve up accounts."

Finally, you should hammer out some specific details in you and your spouse'south wills. Depending on the size of your partner's private assets — such as retirement savings, properties and cash savings — a lot could be at pale if your spouse likewise had considerable debt earlier passing away.

When someone dies, courts typically order the settlement of any outstanding debts through a process chosen probate. Therefore, while you might non be on the hook straight for your spouse's credit card debt, that debt might have to be settled before you lot can access any coin left to yous past your loved i.

In community holding states, courts accept the power to use life insurance money to settle outstanding debts, fifty-fifty if you are the legal casher. This isn't true for non-community holding states, and then that money is typically yours to use equally you wish.