Money problems are unfortunately among the top reasons for divorce. It’s therefore important to have a serious discussion about finances with your future spouse, including any debt either of you owes. Here’s a closer look at what you need to know about marriage and outstanding payments, as you may want to speak with an experienced bankruptcy lawyer before saying “I do.”

What Happens to Debt When You Get Married?

1. Marital Debt Laws Depend on the State

The sharing of property and debt after marriage depends partially on the state. If you live in a community-property state such as Washington or Arizona, any debt incurred by either spouse during the marriage is the responsibility of both parties. In common-law states such as Iowa and Kansas, debts belong to the account owner only with the exception of household, food, and child care expenses. In equitable-distribution states like Alabama, assets and debt get divided equally by the courts if a divorcing couple cannot reach an agreement.

2. Preexisting Debt Generally Doesn’t Count

Regardless of where you live, any debt accumulated before your marriage does not become your spouse’s responsibility. This includes student loan debt. However, if you request repayment assistance and live in a common-law state, you must report your spouse’s income. Additionally, if you cosign a loan or add your name to your spouse’s credit card, you become partially liable for any debt.

3. If Your Partner Dies, You Aren’t Responsible for Outstanding Debt

Again, unless you were a cosigner, you’re not responsible for debt accumulated by your spouse alone if they pass away. However, your partner’s lender(s) will seek repayment and take it out of the person’s estate. This means if your home was solely in your spouse’s name, it will be used in its entirety to pay the debts. If you owned your home with your spouse, the lender(s) will take equity out of their shares.

4. Spousal Liability Removal Is Another Option

Whether your future spouse has serious debt or not, bankruptcy lawyers suggest considering spousal liability removal. Often in the form of pre- and postnuptial agreements, these legal documents keep all income and debts separate. They provide alternatives for couples who don’t want the legal responsibility associated with joint bank and credit card accounts. 

The bankruptcy lawyers at Arnold Law Offices provide clients throughout Pell City, AL, and the surrounding areas with debt consolidation assistance alongside other dedicated services. Call the attorneys today at (205) 338-6565 to schedule a consultation or visit the website for information about their expertise.