Exchanging vows is exciting, but when reality kicks in and you have to combine your finances, you might wonder what you\u2019re responsible for regarding your spouse’s finances.<\/p>\n\n\n\n
If your spouse entered the marriage with a lot of debt<\/a>, is it now your debt, or are you off the hook?<\/p>\n\n\n\n The good news is that when you marry your spouse, you don\u2019t marry their debt.<\/p>\n\n\n\n Phew!<\/p>\n\n\n\n If your spouse entered the marriage with debt solely in his\/her name, it does not affect you. However, once you are married, different scenarios can affect what you owe.<\/p>\n\n\n\n So how do you become responsible for your spouse\u2019s debt? Here are three scenarios.<\/p>\n\n\n\n This is a common scenario. For example, if you and your spouse borrowed money together to buy a house or car or open a credit card<\/a> together, you are both responsible. Likewise, if both spouses are on the application and the creditor used both spouses\u2019 information to approve the loan, you are both equally responsible.<\/p>\n\n\n\n If one partner is responsible for paying the bills and misses a payment, it negatively affects both partners\u2019 credit.<\/p>\n\n\n\n If you co-signed for your spouse\u2019s debt either during the marriage or before, you could be responsible for the debt. When you co-sign, you say you\u2019ll take responsibility for the debt if the application doesn\u2019t make the payments.<\/p>\n\n\n\n A co-signer helps the applicant get approved for a loan. When you co-sign, you let the lender pull your credit and use your income to help qualify for the loan.<\/p>\n\n\n\n It doesn\u2019t matter if you are married or not; the debt is yours if the applicant doesn\u2019t pay it because you agreed to the terms.<\/p>\n\n\n\n If you guaranteed a loan for your spouse before or after marriage, you could be responsible for the debt.<\/p>\n\n\n\n You aren\u2019t on the application when you guarantee a debt as a co-signer. Instead, you are on there to guarantee the applicant\u2019s past credit history and mistakes are taken care of, and they are good to handle the debt.<\/p>\n\n\n\n Like a co-signer, if they don\u2019t pay the debt, you become responsible for it. So there is a risk in guaranteeing a loan, but if you know your spouse is good for the debt, you may feel comfortable doing it.<\/p>\n\n\n\n Handling your spouse\u2019s debt can feel overwhelming, even if you are not responsible. If you join finances, you might worry about where your money goes or how you will achieve your financial goals.<\/p>\n\n\n\n If you feel like you are in over your head in debt, or don\u2019t know how to handle your spouse\u2019s debt, consider a free credit counseling consultation<\/a>. You will learn your options on how to handle the debt and then how to handle your finances moving forward.<\/p>\n\n\n\n Rather than blaming one another for the debt or letting it ruin your marriage, let\u2019s look at everything and help you move forward!<\/p>\n","protected":false},"excerpt":{"rendered":" Exchanging vows is exciting, but when reality kicks in and you have to combine your finances, you might wonder what you\u2019re responsible for regarding your spouse’s finances. If your spouse entered the marriage with a lot of debt, is it now your debt, or are you off the hook? Marriage and Debt The good news … <\/p>\nMarriage and Debt<\/strong><\/h2>\n\n\n\n
How do you Get Joint Debt?<\/strong><\/h2>\n\n\n\n
You Borrowed Debt Together<\/strong><\/h3>\n\n\n\n
You Were a Co-Signer<\/strong><\/h3>\n\n\n\n
You Guaranteed a Loan<\/strong><\/h3>\n\n\n\n
Final Thoughts<\/strong><\/h2>\n\n\n\n