Debt Responsibility in Marriage

Is your spouse incurring debt? 

Debt is stressful. When couples bring it into marriage, the debt belongs in the name of the one who incurred it. However, if one of you co-signed for the other, or you opened a joint credit card, you’re equally responsible. Community property states treat debt as the responsibility of both spouses. Why? Both spouses are assumed to work towards the success of the marriage. They should therefore share assets and debts equally.

Nine states have community property laws: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. The other states are recognized as common law property states. There, property is generally owned by the acquiring spouse. Property owned prior to marriage is considered separate, along with gifts and inheritance acquired by a spouse during the marriage. Some people opt out of the community property ownership by signing a prenuptial agreement. An exception to both parties being responsible for debt occurs if it can be proven that one spouse incurred debt only for personal use or gain. If a spouse secretly uses credit cards to cover ordinary expenses in the marriage, both are liable for the debt. That’s why financial fidelity is essential.

Regardless of where you live, marriage is about becoming one; one in everything: name, address, bed, and money. Cooperation in wisely managing funds requires humble hearts with a desire to love and serve one another and the kingdom of God. Love and respect are foundational in stewarding finances in marriage. God’s way works!

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