A judgment gives a creditor the legal right to forcefully collect debt you owe through a number of methods. Usually, a judgment is followed by a court order allowing the creditor to garnish the wages of the debtor, and sometimes to attach his bank account. If you are married, wage garnishment becomes a more complicated issue. If your wife has a judgment against her, the money you bring home may be susceptible to the judgment.
Common Law States
Most states operate under the rules of common law, rather than community property. Under common law, each individual spouse is entitled to his own separate property, as long as he keeps that property separate and does not use it jointly. This separate property law also applies to the income each spouse earns. As a result, if you live in a common law state, a creditor with a judgment against your wife cannot typically garnish your wages, only your wife's.
Community Property States
Nine states operate under the laws of community property rather than common law. If you live in California, Arizona, Washington, Idaho, Louisiana, Nevada, Texas, New Mexico or Wisconsin, all the income and property you and your spouse earn and own are considered community property. Each of you is legally entitled to half of all the income and assets in the marriage. Since your wife legally owns half of your income, your creditors may be able to successfully garnish at least a portion of your wages, as well. Additionally, if the court allows the creditor to place a lien against your wife's property, you may find your property subject to a lien, as well.
Joint Bank Accounts
Whether or not you live in a community property state, your income still might be in jeopardy if you share a joint bank account with your wife. Even if a creditor cannot technically garnish your wages, if you and your wife share a bank account that is used jointly, your creditor probably has the right to attach the assets in that account. Since state law varies regarding judgments and garnishments, you can consult your state's attorney general to determine whether your money is susceptible.
Income Limitations
While states have the right to determine the specifics of their garnishment laws, they cannot allow more generous garnishment than the federal government allows. Federal law stipulates that no more than 25 percent of a debtor's wages may be garnished, except for special circumstances such as child support payments. Further, the government grants an exemption of the first $154.50 that a debtor earns each week, as of 2009. This means that creditors can garnish only 25 percent of the excess amount. If you and your wife have a low income, it is possible that neither of you are susceptible to wage garnishment.
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