Is a Wife Liable for Her Husband's Credit Card Bills in the State of North Carolina?

Since North Carolina is not a community property state, you are not automatically liable for your husband's credit card debt. If you are an authorized user on his credit card, you are not liable for the debt. There are scenarios where you would be liable, though, so it is important to understand them and how to release liability.

Joint Credit

If you applied for a credit card with your husband at a store or a bank to purchase items or build credit, this debt is a joint liability for both you and your husband. It is listed on your credit report as a joint credit card. Your obligation can only be released by paying off the balance and closing the account.

Co-signer

If your husband applied for a store credit card and asked you to co-sign for him to receive the card, you may or may not have a copy of the card in your name, but if he does not make payments to the account, you are still liable. This card will show up on your credit report as if it is your own liability, but you can add a note stating your co-signer status. Your liability is released by paying off the balance and closing the account. Some banks will release co-signer liability upon written request after consistent payments, a paid-off balance or other factors. Call your bank to confirm the process of co-signer release or debt assumption.

In Death

If your husband died and left a massive credit card debt behind, but this individual debt did not involve you as a co-signer or joint debtor, the debt should not be reported on your credit report since you were not involved in it. Creditors will not be able to pursue the liability with you personally, but they can pursue his estate to pay the debt. In comparison to other estate payouts, credit card debt will be of low priority.

Written Agreement

If you draw up and sign a written agreement with your husband to pay for his credit card bills, this agreement would make you liable for the bills. Although it will not be noted on your credit report, if you breach this agreement, your husband can sue you. Your liability will be released when you fulfill the obligations listed in the agreement or revise the written agreement to release your responsibility of the credit card debt.

References

• FindLaw: North Carolina Marital Property Laws
• Bank of America Online Banking Frequently Asked Questions: Qualified Assumption
• North Carolina General Assembly - NC General Statutes: Survivorship Rights and Future Interests
• North Carolina General Assembly - NC General Statutes: Powers and Liabilities of Married Persons