It isn’t always that you are responsible for your spouse’s debt as it depends upon many facts. Usually, the need to pay the debts of a spouse arrives when the couple is getting divorced or unfortunately one spouse dies and has debts to payback.
There are many facts to consider before you decide to pay the debts. You may be responsible for your spouse’s debts in certain situations. However, before you start planning to pay the debts, it is always to gather info from financial expert blogger’s sites mentioning after-marriage debts to be paid by spouses.
The facts stating whether when you are responsible or not to pay spouse’s debts:
- First and foremost, it depends upon where you live like whether it is community property or an equitable distribution state. Ultimately, it depends upon the state laws where you reside.
- Credit card debt doesn’t become a joint debt until it is issued on the base of your joint account.
- Property bought by both people’s income becomes community property owned equally by both spouses. Thus, there may be chances of paying the debts of your spouse if it is stated in the community property law of your State.
- In a community property state even if a spouse hasn’t taken debt in his/her name can be liable to pay if the other spouse’s creditors file a complaint of nonpayment of debt.
- Creditors can even consider the joint asset under community state law even if the asset document has listed only one name.
There are laws to escape paying the debt of your spouse even under community property state law. You can prepare a legal document where it clearly states that each other tax and income are to be treated separately. These kinds of agreements are considered for your spouse’s future debts and not for the ones that already need to be paid back.
Thus, many to be couples make a nuptial agreement to guard themselves in paying back the personal debts of their spouse. You can ask your nearby expert financial lawyer to suggest the best way to stay clear of the troubles of paying back the debts taken by your spouse.