Most financial experts agree it's healthy for couples to have a financial heart-to-heart before they tie the knot. This can reveal any differences in each person's approach to money. It also means that if a spouse is bringing major debt into the marriage, it doesn't end up a nasty surprise after the honeymoon.
Scope
Debt brought into a new marriage can be a serious problem. A study in 2000 by the Center for Marriage and Family showed it was the main problem encountered by newlyweds, and a leading cause of eventual divorce. The majority of men and women enter marriage with at least some debt, be it auto loans, student loans or credit cards.
Legal Standing
According to the American Bar Association, generally a spouse is not legally liable for debts brought into the marriage by the other spouse. These debts belong to the person who incurred them. In some states though, creditors can take jointly-owned property in the marriage to pay off a debt that belongs only to one spouse. In this case, if a husband comes into a marriage with significant liabilities that concern his new wife, she might be wise to keep her assets in her own name. Debts incurred by one spouse once the marriage has begun are the liability of that spouse alone in most states, unless the debt was for a family necessity such as housing, food, or children's medical expenses.
Practical Considerations
Legal nuances aside, most families operate on a joint budget and often have joint bank and credit card accounts, so debt brought into the marriage, or incurred by one spouse after marriage often ends up handled by both spouses. Married couples must be particularly careful that this does not become a source of resentment.
Credit Report
Your spouse's spending habits can turn up on your credit report. Any joint accounts will be on both individuals' credit reports, and any excessive spending by one spouse or the other can have an impact on the other's credit score. If there is a big disparity between two spouses' credit scores going into a marriage, this can be warning sign of potential trouble ahead. The wife or husband going into the marriage with a much better credit score might need to consider maintaining separate accounts until resolving the issues.
A Debt Plan
Couples having difficulty with debt should to talk together, and, if necessary, with a financial planner to work out a strategy for paying off their debt. Developing a household budget and establishing firm goals for paying off debt by a given date can be good priorities.
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