Buying and moving into a new home is one of life’s great experiences, especially if you’re buying your first home. From getting that pre-approval to the “yes!” response on an offer to closing and moving in, every step is exciting. And while the process is engaging and fun, it’s important to prepare for moving day […]
Can Creditors Come After You for Your Spouse’s Debt?
Your spouse has a lien or bank levy against them for an unpaid debt and creditors are insisting that you are also responsible for their debt. Are they right? When determining if you are responsible for the debt of your spouse, ask yourself these questions:
Were You Married When Your Spouse Became in Debt?
If your spouse had the debt taken out against them after you were married, then you can be responsible as well. However, if they accrued the debt before you were married, you are not responsible for paying off their debt and creditors cannot go after your accounts. If you signed on as a joint account holder after you married you are then responsible for the debt as well.
Have You Taken Out Loans Together?
If you have taken out loans with your spouse, such as a home loan, then you will also be responsible for your spouse’s debt. If you did not co-sign a loan, a credit card or a joint account with your spouse, you are typically safe from creditors.
Remember, even if you didn’t sign a contract or loan, you can still be responsible for “necessary items” like medical care.
Do You Live in a Community Property State?
If you live in a community property state, you and your spouse share debt, even if you did not co-sign on a loan or other contract. However, some spouses can choose to divide up community property in a way that their debts will not be passed on to their spouse.
- New Mexico
Is Your Spouse Deceased?
In the case that your spouse has passed away and left unpaid debts, you can be responsible for them under certain circumstances. For example, if you live in a community property state and you co-signed on a loan. But generally, you are not responsible for your deceased spouse’s debts like credit cards if it is solely in their name.
When dealing with your spouse’s debts, it’s important to know your rights. If you find that creditors are still insisting that you are responsible for your spouse’s debt, talk to a lawyer to protect your assets.