Can You Consolidate Debt in Your Name Without Your Spouse?

People don't always see eye to eye, even when they are married. In terms of finances, this sometimes translates to a wife or husband wanting to consolidate his own debt independently from his spouse. Because multiple factors influence whether this is possible, it sometimes isn't clear what path a person should take with his debt.

Separate and Community Property States

In separate property states, you generally are responsible for your own debt even if you're married, with some exceptions such as if your spouse co-signed for you. In a community property state, the government considers you as one financial unit and thus treats you as responsible for both the assets and debts your spouse acquires. In community property states, consolidation without your spouse is difficult because lenders can consider your husband's debts and assets when deciding if you qualify for a consolidation loan. In a separate property state, you can act much the same way as if you were single when it comes to consolidating debt in your name. You will have to show that you can repay the loan based on your own debt-to-income ratio, however.

Debt Type

Regardless of the state in which you live, some types of debt actually require that, if you desire to consolidate, you do so separately from your spouse. For example, as of 2006, you no longer can consolidate student loans with your spouse. This is because Congress wanted to avoid spouses being made responsible for the educational debt of their wives or husbands. If you aren't sure whether your debt type has these stipulations, check with your lender.

Liability

In some cases, particularly in community property states, creditors can hold a spouse accountable for the debt you wrap into a consolidation loan. This endangers your spouse financially. For this reason, even though you may be able to go through the consolidation process alone, the effects of your consolidation still can reach your spouse. Think about the likelihood of defaulting before you start the process, as your spouse may not take kindly to having to pull your weight financially.

Joint Debt

Joint debt means that the debt is in your name and your spouse's name. Often, if you want to modify a joint account, both account users/holders have to sign off on or be aware of the changes. This means that the lender may be obligated to notify your spouse as to what you're doing. As a result, when you go to consolidate the joint debt, you may have to get permission from your spouse (usually through signing a form) to close the account and consolidate, even if his name isn't going to be on the new loan.