Community Property Laws & Credit Cards

In most states, each person is responsible for the debt he brings to the marriage. However, nine states -- Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin -- are community property states. In these states, all debts, including credit card debt, belong to both members of the marriage regardless of who incurred the debt.

Exception

If one spouse uses credit to purchase items for her exclusive use and the other spouse never uses the purchased items, that item would not be considered community property and therefore the spouse could not be held liable for the debt incurred to purchase it. The spouse who is claiming the exemption must prove in court that she is exempt from responsibility for this debt.

Lawsuits

If a credit card company sues you as the sole debtor, it cannot attach your spouse to the lawsuit after the fact, even if you live in a community property state. Creditors must take collection action against both spouses when they initiate collection activity and get a judgment against them both. However, if a creditor sues you along with your spouse and you believe his debt is not community property, you can bring the issue up as part of your defense.

Death

If a person owes credit card debt when he dies, normally the executor of the estate must pay back the debt using the estate's assets; if this is not possible, the creditor must write off the unpaid debt as a bad debt. However, if the debtor lived in a community property state and was married at the time of his death, his spouse is considered responsible for the debt and must make payment arrangements. The spouse inherits the debt in these cases even if her name was not on the account.

When to Contact an Attorney

If you live in a community property state and your spouse has a significant amount of debt, contact an attorney to find out about possible consequences to you as well as to discuss your options for handling the debt. You may also want to contact an attorney if you are marrying someone who has a significant amount of debt to learn how to protect yourself from being attached to his debt in the event of a lawsuit or other collection action.