Am I Responsible for Wife's Credit Card Debt Prior to the Marriage in New York?

New York state residents are not responsible for their spouse's premarital debts. Even during marriage, you can't usually be held responsible for your spouse's debts if hers is the only name on the credit card bill or the auto loan. Nevertheless, her debts and how she pays them off may affect you and your income after your marriage, or if you divorce.

Individual Debt

A spouse's individual debts are hers alone with exceptions including spouses being liable for each other's tax debt when they file a joint return. You can, however, make the choice to be responsible for your spouse's debt. For example, you can state in a prenuptial agreement that you'll pay half of her premarital credit card debt. If you take out an auxiliary credit card on her account, it's possible for the credit card company to hold you liable for all the debt if your wife defaults.

Property

If your creditors decide to take action against your spouse by garnishing her accounts or filing a lien on her property, you could find yourself involved. If you have joint ownership of a checking account or your house, that joint property is vulnerable to her creditors up to 100 percent if that's what it takes to pay the debt. The creditors cannot, however, place any liens or claims on property you own in your own name.

Bankruptcy

If your spouse files Chapter 7 bankruptcy on her individual debts, it could also affect your assets. In Chapter 7, the court will seize your spouse's assets and cash to create a bankruptcy estate with which to pay off creditors. The estate will include any jointly owned assets and accounts. New York state law exempts some items from bankruptcy, and in 2010 the state increased the exemptions. A Long Island homeowner, for example, can protect up to $150,000 of the equity in his home from Chapter 7 sale.

Divorce

If your marriage breaks up, dividing debts can be as tricky as dividing property. One issue to arise in New York courts is whether you're entitled to compensation if your spouse uses money earned during the marriage to pay off her personal debts. Rochester attorney Alexander Korotkin notes that, in 2009, a state appeals court ruled that if a spouse uses marital property to pay personal debts, the other spouse has no grounds to recoup any of the money: Courts shouldn't second-guess how money was spent to pay down debt unless there's evidence of fraud.