'If Something Were To Happen To My Husband, Am I Responsible For His Credit Card Debt?' Suze Orman Says 'Most Likely' — And Here's Why

In a recent episode of the Women and Money podcast, Suze Orman addressed a common concern for married couples living in community property states: spousal responsibility for credit card debt. Her insights highlighted the intricacies of these laws and provided valuable advice on how to manage such financial risks.

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A listener named Jane asked, "If something were to happen to my husband, am I responsible for his credit card debt? My name is not on his card, and I have not signed anything in a contract with him that went on the card."

Suze Orman explained, "In the state of California, you most likely will be held responsible for your husband's credit card debt that was incurred during the marriage, even if your name is not on the card and you did not sign any contract related to the debt." In community property states, debts incurred by either spouse during the marriage are generally considered community debts.

However, there are notable exceptions to this rule. Suze pointed out, "If your husband incurred those debts before the marriage or after a legal separation, they are considered his debts and you would not be responsible for those unless you specifically agreed to take on such debts."

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The following states have community property laws:

• Arizona
• California
• Idaho
• Louisiana
• Nevada
• New Mexico
• Texas
• Washington
• Wisconsin

To avoid unexpected financial burdens, couples should take proactive steps:

1. Open Communication: Regularly discuss financial matters and debts to ensure both parties are aware of any liabilities.
2. Prenuptial Agreements: Consider drafting a prenuptial agreement to define financial responsibilities clearly.
3. Separate Accounts: Maintain separate accounts for personal debts incurred before the marriage to avoid automatic liability.
4. Legal Advice: Consult with a financial advisor or attorney to understand the specifics of state laws and how they apply to your situation.
5. Debt Management: Work together to manage and reduce debt, creating a solid financial plan that includes savings and emergency funds.

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Financial expert and author Jeff Landers explains that in a community property state, if a spouse incurs $50,000 in credit card debt, the other spouse remains responsible. Even in other states, if a spouse accumulates debt buying necessities for the family, a judge might consider it joint debt in a divorce because both parties benefited.

Landers also highlights that student loans taken during the marriage can be considered joint debt if both partners benefit. This is particularly true if one spouse's skills and earning capacity increase as a result of further education, benefiting the family unit.

An American Academy of Matrimonial Lawyers study found that prenuptial and postnuptial agreements are effective tools for protecting individuals from spousal debt. These agreements can specify that debts incurred by one spouse remain their responsibility, thus safeguarding the other spouse's finances.

Suze emphasized, "The key to a secure financial future is awareness and proactive planning." By understanding the implications of community property laws and taking steps to manage finances jointly, couples can better protect themselves from unexpected debt responsibilities.

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