Is a Husband Responsible for His Wife's Personal Loan?

A husband may be responsible for his wife's debt.

Unfortunately, many couples are not as open with one another about financial issues as they should be. This often results in one spouse accruing debt that the other spouse is not aware of. In many cases, both spouses are equally responsible for payment.

Facts

A husband may be held responsible for his wife's personal loan if the couple lives in a community property state. In community property states, debts and assets that are accrued by either party are viewed as owned by both spouses.

Features

Even though the husband may be held legally responsible for paying the personal loan, evidence of the loan will not appear in his credit report.

Time Frame

A husband will not be held responsible for paying his wife's personal loan if she owed the debt before the marriage.

Considerations

The rule about marital debt changes should the wife die. In the event of her death, a personal loan she owed that was in her name only will not pass to her husband and he ceases to hold any legal responsibility for paying it.

Warning

If a personal loan goes unpaid, the lender may sue both the husband and the wife. If the creditor wins a judgment, a record of the debt will appear on the husband's credit record as a judgment.

References

• Bankrate.com: Ask Dr. Don
• BCSAlliance.com: Is My Spouse Responsible for My Debts?

Resources

• The Wall Street Journal: With This Debt, I Thee Wed