Will I Take on My New Husband's Debt?

While debt incurred before marriage can affect your household budget and finances, you are not responsible for paying any debt incurred by your spouse before marriage. To avoid unwittingly taking responsibility for his debt, do not take out a joint consolidation loan and keep your own money and property separate and in your own name.

Debt Before Marriage

You and your husband are each solely responsible for your own debts taken out before you got married. Unless either one of you co-signed for a debt, or you jointly took out a consolidation loan to pay off these debts, neither of you is responsible for the other's premarital debt.

Debt After Marriage

In most states, spouses are only responsible for debt that they take out on their own or jointly with their spouse. If your husband were to take on additional debt after marriage, and you did not agree to the debt, did not sign for the debt and did not benefit from the debt, you are generally not responsible for repaying the debt. An exception to this exists in states that have community property rules. In a community property state, spouses can be responsible for the repayment for any debt taken on by either spouse during the marriage. There are some exceptions to this rule that vary by state law, the nature of the debt and whether you and your spouse both benefitted from the debt. A lawyer can help you sort out whether or not you are responsible for a spouse's debt in a community property state.

Commingled Funds and Assets

Although you are not responsible for paying your husband's premarital debt, your funds may be at risk if a creditor sues your husband. After a creditor wins a lawsuit, it can garnish your husband's bank accounts in order to satisfy the judgment. If you and your husband have joint accounts or assets, a creditor could potentially take your money or property. To prevent this from happening, open a bank account in your name only and keep your property, such as your home, in your own name.

Credit Reporting

Even after marriage, each spouse's credit report remains separate from the other. Creditors only report your debts to your credit report and your husband's debts to his credit report. However, if you and your husband take out debt together, the debt will show up on both reports.

If you and your husband apply for a joint loan, such as a mortgage, lenders examine both reports before making a decision. If your husband has a lot of debt, lenders turn down your loan application or may charge a higher interest rate, even if your report shows little or no debt.