When You Get Married, Do You Take on Their Debt?

When individuals consider marriage, a common financial question arises: does saying “I do” mean taking on a spouse’s existing debts? Marriage introduces various legal and financial considerations regarding debt, which can differ based on when the debt was incurred and where the couple resides. This article clarifies how debt is treated in marriage, providing insight into individual responsibilities and shared obligations.

Pre-Marital Debt and Individual Responsibility

Generally, debt accumulated by an individual before marriage remains that person’s separate responsibility. For instance, student loans, credit card balances, or mortgages acquired solely by one partner prior to the wedding are typically considered their individual obligations. Creditors cannot typically pursue the new spouse for repayment of these pre-marital debts. However, while the debt may not become legally shared, it can still indirectly impact the marital household’s financial planning and creditworthiness for future joint applications.

The only way a spouse might become responsible for pre-marital debt is if they voluntarily take action to assume that responsibility. This could involve becoming a joint account holder or co-signing on a loan after the marriage. Absent such explicit actions, the individual who incurred the debt before marriage remains solely accountable for its repayment.

Community Property and Separate Property Principles

Understanding how debt is treated during marriage requires distinguishing between “community property” and “separate property” states. These legal frameworks dictate the ownership of assets and responsibility for debts acquired during the marital union. Most states operate under common law principles, treating property and debt acquired during marriage as belonging to the individual who incurred it unless explicitly shared.

In contrast, community property states generally consider assets and debts acquired by either spouse during the marriage as “community” property or “community” debt, belonging to both spouses equally. This applies even if only one spouse incurred the debt or earned the income. Debts incurred before marriage, along with gifts or inheritances received by one spouse, typically remain separate property in these states.

For example, if one spouse takes out a loan in a community property state, it is generally considered a joint debt, making both spouses liable. In common law states, assets and debts acquired during marriage are typically considered separate unless explicitly shared, such as through joint accounts or co-signing. However, even in common law states, nuances exist regarding “marital debt” for necessities or joint benefit.

Debt Incurred During Marriage

Debt acquired after the marriage is generally categorized as “marital debt” and its treatment depends significantly on the state’s property laws. In community property states, most debts incurred by either spouse during the marriage are considered community debts. This means both spouses are typically held equally responsible for repayment, even if only one spouse’s name is on the account or knew about the debt. Examples include new credit card debt, car loans, or mortgages taken out during the marriage.

In common law states, debts incurred during marriage are generally the responsibility of the spouse who incurred them, unless the debt was for the benefit of the marriage or family. If the debt benefited both spouses, such as household expenses or essential goods, shared liability can arise. This concept is sometimes supported by the “doctrine of necessaries,” an old legal principle that can make one spouse liable for the other’s debts related to essential goods and services like medical care, food, or shelter.

It generally applies when essential services or goods are provided to one spouse, and the creditor relied on the other spouse’s ability to pay, provided the debtor spouse cannot satisfy the debt.

Implications of Joint Financial Actions

Spouses can voluntarily create shared debt responsibility, regardless of state property laws or when the original debt was incurred. When individuals co-sign on loans, such as for a car or a home, both parties become equally liable for the entire debt. This means the lender can pursue either co-signer for the full amount if payments are not made.

Opening joint credit card accounts also establishes shared responsibility for the entire balance. Even if one spouse makes all the charges, both account holders are legally responsible for repayment. Similarly, joint bank accounts can lead to shared debt if overdrafts occur or if linked credit lines are utilized.

These joint financial actions create a direct and explicit financial responsibility for both parties, making them “jointly and severally liable.” This means a creditor can seek the entire repayment amount from either individual, not just a proportional share. Therefore, carefully considering the implications before engaging in joint financial undertakings is prudent, as they directly tie both spouses to the debt.