Spouse Debt Obligation

When you marry somebody, you marry not only that person and his family, but also his debt load. Although the nondebtor spouse generally has no obligation to the debtor spouse's creditors, the existence of this separate debt can complicate the financial lives of both parties. This remains true throughout the marriage and into divorce.

Nondebtor Spouse's Obligation

Although the nondebtor spouse has no personal liability on the other's separate debt, the presence of that debt affects her financial life in several important ways. First, having a lot of debt drives down a person's credit score, so the couple will have difficulty qualifying for loans that other couples may get easily. The debtor spouse's credit may be so maxed out that the couple can qualify for mortgages and car loans only in the nondebtor's name. Furthermore, creditors can proceed against the debtor spouse's share of jointly-titled property, although this is mitigated in states where a husband and wife can hold real property as tenants by the entirety. Finally, a party's separate debt load will tie up that party's income, leaving little for contribution toward marital expenses.

Getting It Under Control

Although the debt may exist only in one party's name and may represent expenditures he made before the parties even met, the existence of that debt is an issue for both parties. Dealing with it effectively will require reducing the couple's standard of living to free income for use toward payment of that debt. Going forward, the parties will need to maintain an honest dialogue about how the debtor spouse incurred so many bills and what both partners can do to keep it from happening again.

Effect on Property Division in Divorce

A short-lived marriage may result in a situation where one or both parties is still paying on premarital debt after separation. Although states vary on the specifics of property and debt division pursuant to a divorce, it is uniformly recognized that premarital debt is separate debt and not subject to division. In equitable distribution states, however, the existence of a significant separate debt load can influence whether the court enters an unequal distribution in favor of one party over the other. A spouse with significantly more debt than the other party may need an unequal division to help address his greater economic weakness.

Effect on Alimony in Divorce

In all states, once a court determines that an alimony award is necessary, the amount of alimony to be paid is based upon the standard of living the parties enjoyed during the marriage, the supporting spouse's ability to pay and the dependent spouse's need for support. A separate debt load affects all of these things; the existence of separate debt siphons money away from a couple during marriage and effectively lowers their standard of living. Separate debt on the part of the supporting spouse affects his ability to pay, and debt on the dependent spouse's part places her in greater need of alimony in order to survive.