Community Property
Some states in the United States have community property laws. In these states,
each spouse is liable for the other’s debts, period. The only major
exception is the purchase of real estate; both spouses’ signatures are
required on real estate loans and transactions. On all other credit accounts,
in a community property state, you can be held liable for debt you never even
knew existed.
Community property states are: Arizona, California, Idaho, Louisiana, Nevada,
New Mexico, Texas, Washington and Wisconsin.
If you don’t live in a community property state, you’re less
at risk for your spouse’s debts. It all comes down to what sort of accounts
your spouse has: joint or individual.
When you apply for credit, whether a mortgage or a credit card, you must
select whether it will be a joint or an individual account. If your spouse
has opened an individual account, his or her credit alone was considered by
the creditor, and your spouse alone is responsible for making good on the
account.
If you open a joint account, both of your credit histories are considered,
and both of you are liable.
Next: Authorized Users |
