Can Spouses Be Held Liable for Debt Collection in Texas?

Each state has different laws regarding debt collection and the methods creditors may use to recover monies owed. In some cases, you may be subject to debt collection actions even if your spouse is the person who owes the debt. If you live in a community property state, such as Texas, debt collectors can take steps to seize your bank accounts or other assets if it's determined that you are liable for your spouse's debt.

Time Frame

Under Texas law, your liability for your spouse's debt depends on when the debt was incurred. If your spouse incurred a debt in his name prior to the marriage, the debt remains his sole responsibility unless you acted as a co-signer or guarantor. If you add your name as a joint account holder to the debt at any time before or after the marriage, you automatically become liable. Your liability for debts incurred solely by your spouse after the marriage is determined by the type of debt involved.

Contracts vs. Torts

Texas law makes a distinction between torts and contracts in determining spousal liability for debts. A debt is considered a tort if it is related to a legal action brought against your spouse in a personal injury lawsuit. In the case of a tort action, you are generally not considered liable for the debt unless your actions directly or indirectly caused the injury. If the debt is created by a contract, you can be held liable if the debt was incurred for necessities, such as food, clothing, shelter or medical care. For example, if you're covered under your spouse's insurance plan but you receive medical care not covered by the plan, you can be held liable if your spouse fails to pay the out-of-pocket expense to the health care provider.

Liability and Assets

If you're liable for your spouse's debts, Texas law has specific guidelines as to which of your assets may be seized. Generally, debt collectors cannot seek to attach any assets held in your name only that belonged to you prior to the marriage. If you own an account that is under your sole control but contains community property, creditors can attach it to debts related to tort actions only. If you and your spouse own a joint bank account, all funds in the account are considered community property, meaning creditors can seize them regardless of which spouse they belong to or who incurred the debt.

Considerations

If you're concerned about protecting your assets from your spouse's creditors, you can draw up a legal agreement prior to or after the marriage specifying which assets should be treated as community property and which should be kept separate. If your spouse dies, any community property under your sole control becomes subject to seizure by contract creditors. However, any new income or assets you receive are considered your separate property only and are not available to your spouse's creditors.