Can a Judgment Affect Assets Held by a Spouse?

Judgments are court orders that allow creditors expanded avenues for debt collections. Not only will a judgment seriously harm your credit rating and place your assets in danger of seizure, judgments can affect assets held by your spouse. The laws in your state of residence dictate whether or not your spouse's assets can be touched by a creditor with a judgment.

Bank Accounts

If your name is on a bank account held by your spouse, then the judgment may affect the assets held in the account. If the bank account is solely in your spouse's name, then the judgment should not affect the assets, unless you live in a community property state. Your state of residence must allow garnishments or levies to be used on joint bank accounts in order for the judgment creditor to seize the funds. If you can prove that the funds within the joint account are solely from your spouse's income, you may appeal the garnishment and have the funds released. Other exemptions include a portion of your disposable wages, Social Security income, Veteran's benefits and certain pension and retirement income.

Wages and Real Estate

Your spouse's wages may be subject to garnishment for a judgment that is solely in your name if you incurred the debt during your marriage. A spouse is not liable for debts incurred outside the marriage unless their name is also listed as the account owner. In this case, the judgment would be against all listed account owners. For example, if you have a credit card in your name only, but add your spouse as an account holder after you are married, your spouse is liable for the portion of the debts incurred during the marriage. If the debt leading to the judgment is solely in your name, but the debts were incurred during the marriage, your spouse's wages may still be subject to garnishment if your state adheres to the Doctrine of Necessaries. The same rules apply to real property assets that are solely in your spouse's name. Judgment creditors can petition the court to place a lien against real property in the amount of the judgment.

Doctrine of Necessaries

Certain states uphold the rule of common law called the Doctrine of Necessaries. If you live in Ohio, Connecticut or any other state that recognizes this law, then assets held by a spouse may be affected by a judgment. Medical debt and other expenses deemed necessities fall under this doctrine.

Community Property

If you live with your spouse in a community property state, a judgment against you can affect the assets held by your spouse. Laws vary by state, but many community property states consider the debts incurred in the marriage the property of both parties, just as the assets incurred during the marriage are shared equally. Community property states are Alaska, Wisconsin, New Mexico, Arizona, Louisiana, Nevada, Washington, Idaho, Texas and California.