Can a Spouse Be Liable for the Debt Incurred by the Other Spouse Prior to the Marriage?

Certain debts incurred prior to a marriage can impact the property of both spouses. Depending on where you live and the type of debts involved, a spouse can be liable for prior debts incurred by the other spouse. If past debts are a concern, maintain separate bank accounts and title property individually. This approach works in states other than those with community property laws.

Community Property

Community property states, such as New Mexico, California, Arizona, Idaho, Texas, Louisiana, Alaska, Nevada, Washington and Wisconsin, may hold a spouse liable for debt incurred by the other spouse prior to the marriage. Community property laws are state specific; check your state statute to determine whether or not prior debt becomes marital property.

Joint Accounts

If you add your new spouse's name to the account as a joint account holder, your spouse is liable for the debt incurred prior to the marriage. Even if you don't add your spouse's name to the account, any debt incurred on the account during the marriage becomes a liability to your spouse. For example, if one spouse incurred credit card debt prior to the marriage and never added their spouse to the account, then the creditor can only pursue collection from the name on the account. However, if you own a joint bank account with your spouse, the creditor may be able to levy the funds in the account as payment for the debt. The creditor must have a judgment and your state must allow joint accounts to be garnished.

Judgments and Taxes

Some debts incurred prior to marriage become a marital liability in states which do not employ community property laws. Child support, alimony and taxes are debts which can affect joint bank accounts and jointly owned property, even if the debts were incurred prior to the marriage. Federal and state taxes as well as creditors with a civil judgment can levy bank accounts and place liens on jointly owned property.

Business Debts

Business debts incurred by one spouse prior to and during the marriage are generally not the responsibility of the other spouse, unless both spouses own the business. If both spouses co-signed for the debt, then both spouses are responsible for repaying the debt. Community property states that allow the non-business owner spouse a portion of the assets may also allocate them an equal portion of the debt.