Spousal Debt

In today’s episode Chuck answers a question about spousal debt and explains how spousal debt could affect you and how to avoid problems related to it. Just because you marry someone does not mean their past financial decisions become yours as well.

Spousal Debt Video Transcript

Chuck I have a question. I’m thinking about getting married and I am worried because my perspective fiancee has a bunch of debts. She owes everyone in the world a ton of money and I’m worried if I marry her that I am going to be responsible for those debts. Is that the case?

*Chuck laughs at a Joke*

All kidding aside, just because you marry this person, male or female, you aren’t accepting all of the things that they did in the past. In other words, if this person has a ton of debt, you are not accepting all of that debt.

Now, I say that with a caveat: Don’t combine checking accounts because you will have issues. If her name is on your checking account (a joint checking account) and somebody attempts to take money to pay that debt after she has been sued and they have a judgement, they can reach into that joint account. Then you have a mess. So don’t ever combine or commingle your community debt after getting married.

Don’t apply for joint credit. This is probably being over safe, but that is what I would do. My best advice to you is to try and clean up as much of that as you possibly can, you and her working together to make some of that go away. But, no. Getting married to somebody does not mean you’re accepting all of their bad decisions prior to getting married.

In that case, we’re going to Vegas this weekend!

Alright!