Since Florida is not a community property state, you must sign an agreement in order to be held liable in court for debts your spouse incurs in his own name. Consider speaking to an independent financial adviser about how you and your spouse can plan for retirement. It's a good idea to talk with your partner about your financial situation before getting married, so you understand how much debt you have as a couple and who's responsible for which debt. If the deceased had a will, the person designed to handle the estate is called the executor. There are some exceptions and the exceptions vary by state. How much do you know about your partner’s finances? A spouse does have the option of paying the other's debt as part of the divorce agreement. If your spouse owes money to the IRS and you file jointly, you both become responsible for each other’s taxes, penalties, debt, and levies. Posted at 01:32h in Marriage and Debt by Craig W. Andresen, Esq. First, there are potential consequences you may face if a debt goes unpaid. Financial privacy is one thing but too much secrecy can cause issues down the line – especially if you’re unaware of your partner or spouse’s credit history and make any joint applications. For many couples, getting married means merging different aspects of their individual financial lives. If your spouse had a lot of credit card debt when he or she passed, you may become responsible for it but only in some situations. Although both spouses are generally liable for debts incurred during a divorce regardless of the name on the bill, there are a handful of situations in which an unknowing spouse could be off the hook for accrued debts. I get it. Generally, one is only liable for their spouse's debts if the obligation is in both names. The take-away of the Wilton Meadows case is that one spouse is not statutorily liable under C.G.S. When one or both partners have debt coming into the marriage, the debt belongs solely to the person that incurred them. Say, for example, you have $15,000 in private student loans in your name. If you and your wife have individual debts, such as credit cards held in only one spouse's name, you are generally only responsible for your own debts. Further, in certain circumstances, a spouse may not be held directly responsible for the other spouse’s medical bills. But one question you may have is: If I marry someone with debt, does it become mine? Also, if applying for a joint loan in the future, the bankruptcy of one spouse will affect the creditworthiness of the applying couple. By refusing to be made a responsible party to the other spouse’s medical debts, at first glance, this may hold true. 31 Aug Good News for Responsible Spouses: You Aren’t Responsible for the Other Spouse’s Debts. Over time this has changed. One spouse in a marriage may believe that they will not have to be responsible for medical debts incurred by the other spouse. Under Minnesota law, one spouse is usually not liable to a creditor for the debts of the other spouse. It means that if one person takes out a large sum of money without their ex-partner’s knowledge, the bank or building society may ask the other person to make all the payments before allowing the account to be closed, as both people are liable for the debt. A Maryland family court judge will not reassign debt from one spouse to the other, so you may not be responsible for the individual debts, credit cards, mortgages, or medical bills that are only in your spouse’s name. Because of contractual liabilities, one way some people are able to avoid being responsible for their spouses’ debt is to keep all debts in one name only. Community property is liable for everything. Financial Takeaways: What COVID-19 Taught Us So Far and the Path Ahead, 11 Simple Ways to Save Money This Autumn Season. Bankruptcy can cause you to be held responsible for debts your spouse agreed to pay, even when the judgment of divorce says otherwise. One of the most common debt concerns for customers is how their debt could affect their partner or spouse. In California, the community property is liable for the debts of either spouse. It includes debts you didn't even know about. But this … Which spouse is responsible for the debt depends on a number of factors, namely the state laws where the spouses live and whether there are any agreements pertaining to debts … This means that in most situations, spouses are only responsible for the debts of the other spouse if an independent reason exists for such liability. This sharing equally is whether you're both liable for a debt that's in only one of your names after marriage depends largely on where you live. It is also important to know that no-one is legally responsible for their spouse’s debts just because they are married. When only one spouse signs a loan or credit card contract, however, the other spouse may or may not have liability for the debt. Or, more accurately, they’re only half right. Debt Division Attorneys Morris County, NJ Am I Responsible for Debts Incurred by my Spouse if the Debt Isn’t in my Name? IRS Form 8379 for Injured Spouse Relief—Do You Qualify? Feel free to visit our, Help with Debt: 11 Simple Steps to Take Charge of Your Debt Problem. I know at one time it was a standard practice, sort of a pre-emptive strike, when a married couple was splitting up, and “A” didn’t want to be saddled with debts incurred by “B” in “A’s” name. However, this is not the case; your files are only linked in the case of joint credit agreements. For example, if spouse #1 buys a car to get to work to earn money for the martial community, then the vehicle debt is likely “community” debt. Judges have interpreted this law in various ways, however; if your spouse owes money, you may or may not be liable. Before tying the knot, it's important to understand how debt affects marital finances. In the state of Virginia, each spouse is responsible for the debts that they hold in their name only. Many more won’t tell their partners about their debts because they are worried about how they will react. Many times, family members do not even pay attention to what they signed when their loved one was admitted to the hospital, so they often do not know whether they agreed to pay the debt. Typically, both spouses are equally responsible for paying any liability incurred during the marriage, regardless of whose name is on the account. Your partner may be okay helping out with repaying your debts, but if not, that's something you should know beforehand. If you live in a community property state, most debts incurred after marriage may be treated as belonging to both spouses. If you live in a community property state, you would typically bear responsibility for such a debt (MN is not such a state so it is not applicalbe to your situation). Debt collectors claim you are personally liable for your spouse, or ex-spouse’s, debts. Similarly, opening a joint credit card account--whether it be because one of you wants to build credit or double up on earning credit card rewards—would also make you both equally liable for the balance. So if your partner co-signed on a car loan or student loan because your credit score wasn't good enough to get the loan, they'd still share legal responsibility for the debt even if they don't drive the car or go to school. However, one spouse can incur debt for their marital community. Another common myth is that your credit file will be affected if you change your surname after marriage. When any kind of debt is taken out in just one person's name, it is only that person who is liable for the debt. 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