More than 40 percent of married couples say they fight over money. Since American households averaged more than $5,000 in credit-card debt as of 2009, it's a common problem. How it affects your marriage depends on where you live and why you incurred the debt. Consult with an attorney in your state to find out what the law is there and where you stand if you think you might have a problem.
Community Property State Laws
Wisconsin, Washington, New Mexico, Texas, Louisiana, Nevada, California, Idaho and Arizona are all community-property states. In these states, your spouse's creditors can go after assets owned solely by you if he defaults on the loan. You're both responsible for all debt either of you contracts for during the marriage. In a divorce, marital debts are usually distributed evenly between you, although Texas courts will consider which of you incurred the debt and why.
Common-law State Laws
In all other states, as of February 2011, if one spouse runs up a credit card in her name alone, she is usually solely responsible for paying it back. Creditors cannot go after one spouse for debts that are held in the sole name of the other. In some states, they can't levy on assets held jointly between spouses, either, to satisfy debts that are not in both names.
Family Debt
Common-law states will sometimes make an exception for any debt incurred for the betterment of the family, such as for shelter, furniture or a child's needs. Liability for these debts might be distributed between spouses at the court's discretion in a divorce situation, no matter whose name it is in.
Premarital Debt
In almost all states, premarital debt is the separate property of the spouse who incurred it before marriage. Since repayment of such loans generally comes from marital funds, however, both partners are affected by it. As far as creditors and divorce courts are concerned, though, only the spouse who took on the debt is responsible for repaying it.
Tax Liabilities
The Internal Revenue Service has some of the most clear-cut rules regarding marital tax liabilities. When you file a joint tax return and you both sign it, you are both equally responsible for paying anything that is due. If one of you defaults on payment, the IRS will go after the other for the full amount. If you file a separate return and only you sign it, you are solely responsible for paying any taxes you owe.
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