Is a Spouse Liable for Their Partner’s Credit Card Debt?

Joint account holders: Sharing full responsibility

There’s one situation where spousal liability is absolute and clear-cut: when you’re a joint account holder on a credit card. As a joint account holder, you are equally and fully responsible for all debt on the account, regardless of who made the purchases.

• Joint account holders have full access to the credit line, can make charges, and are both contractually obligated to repay the debt. Both names appear on the account, both individuals’ credit scores are affected by the account’s payment history, and both are liable for the full balance.

If your spouse racks up substantial debt on a joint credit card and stops making payments, the credit card company can pursue you for the entire amount. They don’t have to split the responsibility or go after your spouse first—you’re both individually liable for 100% of the debt.

This differs significantly from being an authorized user, which is a common source of confusion.

Authorized users: Limited liability, real credit impact

An authorized user is someone who has permission to use a credit card account but is not legally responsible for repaying the debt. Parents often add children as authorized users to help them build credit, and spouses frequently add each other as authorized users for convenience.

• As an authorized user, you can make purchases using the card, but you didn’t sign the credit card agreement. The primary account holder bears the legal responsibility for repaying all charges, including those you made. Creditors generally cannot pursue you for the debt on an account where you’re merely an authorized user.

However, being an authorized user isn’t without consequences. The account’s payment history typically appears on your credit report and can affect your credit score.

• If the primary account holder misses payments or maxes out the card, your credit score can suffer even though you’re not legally liable for the debt.

The good news is that you can usually remove yourself as an authorized user by contacting the credit card company. Once removed, the account should eventually be removed from your credit report, though this can take time.

When your spouse Dies: Navigating debt after loss

The death of a spouse is devastating emotionally, and the financial aftermath can add stress during an already difficult time. Understanding your liability for your deceased spouse’s credit card debt is crucial for protecting yourself during this vulnerable period.

• In community property states: If your spouse dies and you live in a community property state, you’re generally responsible for debts incurred during the marriage, even if only your spouse’s name was on the account. These debts are considered community debts and must typically be paid from the estate or by the surviving spouse.
• In common law states: In common law states, you’re generally not personally liable for your spouse’s individual credit card debt. These debts become obligations of the deceased spouse’s estate. The estate—including any assets your spouse owned individually—should be used to pay outstanding debts before any remaining assets are distributed to heirs.

However, several important caveats apply:

• Joint accounts: If you were a joint account holder, you remain fully liable for the debt regardless of which state you live in or which spouse made the charges.
• Estate assets: Even if you’re not personally liable, your spouse’s estate must pay their debts before distributing assets to beneficiaries. This can reduce or eliminate any inheritance you might have expected.
• Joint property: In some situations, jointly owned property may need to be used to satisfy estate debts, depending on state law and how the property was titled.
• Creditor contact: Creditors may contact you after your spouse’s death seeking payment. In many states, they’re legally required to pursue the estate, not you personally (unless you’re in a community property state or were a joint account holder). You have rights under the Fair Debt Collection Practices Act, including the right to request that creditors cease contact with you.

Never make a payment on your deceased spouse’s individual debt without consulting an attorney first. Making even a single payment could be interpreted as accepting responsibility for the debt, potentially making you liable when you otherwise wouldn’t have been.

Protecting yourself: Practical strategies

Understanding liability is important, but preventing problems is even better. Here are strategies to protect yourself from unwanted liability for your spouse’s credit card debt:

• Maintain some financial independence: Even in a happy marriage, keeping at least one credit card in your name alone helps maintain your individual credit history and provides a financial safety net. Similarly, consider maintaining a small individual bank account alongside joint accounts.
• Understand what you’re signing: Before agreeing to be a joint account holder, understand that you’re accepting full liability for all debt on that account. If you want to help your spouse access funds without assuming liability, consider authorized user status instead, or simply provide them access to a joint bank account.
• Monitor your credit reports: Check your credit reports regularly (you can get free reports from all three bureaus at AnnualCreditReport.com). This helps you identify any accounts or debts that might affect you. If you notice your spouse’s individual accounts appearing on your report, investigate whether you’re an authorized user or if there’s been an error.
• Consider a postnuptial agreement: If you’re concerned about liability for existing debt or want to clearly define financial responsibilities in your marriage, a postnuptial agreement can specify that certain debts remain separate. This is particularly valuable if one spouse has significant debt or poor spending habits.
• Communicate about finances: Many marital financial problems stem from lack of communication. Regular, honest conversations about spending, debt, and financial goals can prevent surprises and help you work together toward financial stability.
• Know your state laws: Understanding whether you live in a community property or common law state is crucial. If you move between states during your marriage, be aware that your liability could change based on where you’re living when debt is incurred.

Divorce and debt: Division doesn’t equal liability

When a marriage ends, dividing debt is often as contentious as dividing assets. It’s crucial to understand that divorce decrees and property settlement agreements determine how debt is divided between spouses, but they don’t change your liability to creditors.

• If you were a joint account holder on a credit card, you remain legally liable to the credit card company for that debt even if your divorce decree states that your ex-spouse is responsible for paying it. The divorce decree is an agreement between you and your ex-spouse, but it doesn’t alter your contract with the creditor.

This creates a dangerous scenario: if your divorce decree assigns a joint credit card debt to your ex-spouse, but they fail to pay, the creditor can still pursue you for the full amount. You would then need to take legal action against your ex-spouse for violating the divorce decree—an expensive and time-consuming process with no guaranteed outcome.

Best practices when divorcing:

• Pay off and close all joint credit card accounts before finalizing the divorce if at all possible
• If debts can’t be paid immediately, remove yourself as a joint account holder (though this requires the creditor’s cooperation and may not always be possible)
• Remove your ex-spouse as an authorized user on your individual accounts
• Refinance any joint debts into individual loans in the responsible party’s name alone
• Monitor your credit reports carefully after divorce to ensure your ex-spouse isn’t opening new accounts in your name

What if your spouse’s debt becomes a problem?

Even if you’re not legally liable for your spouse’s debt, it can still impact your life significantly. Creditors calling your home, stress affecting your relationship, and the potential drain on household finances can all create serious problems.

• Open communication: Have an honest conversation about the extent of the debt, what caused it, and how to address it together. Shame and secrecy often make debt problems worse.
• Create a budget: Work together to understand household income and expenses, and create a realistic plan for paying down debt while meeting necessary expenses.
• Consider credit counseling: Nonprofit credit counseling agencies can help create debt management plans, negotiate with creditors, and provide financial education. Look for agencies accredited by the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA).
• Understand bankruptcy options: In severe cases, bankruptcy might be appropriate. Both individual and joint bankruptcy options exist, and the right choice depends on your specific situation and state laws. Consult with a bankruptcy attorney to understand your options.
• Protect your credit: If your spouse’s debt is damaging your credit through joint accounts, consider whether you need to separate some financial accounts to protect your individual creditworthiness.

The bottom line

Whether you’re liable for your spouse’s credit card debt depends on several factors: whether you’re in a community property or common law state, whether you’re a joint account holder or authorized user, when the debt was incurred, and whether your spouse is living or deceased.

Marriage is a partnership, but that doesn’t automatically mean you’re partners in all financial obligations. Understanding the rules and taking proactive steps to protect yourself isn’t cynical—it’s simply smart financial management that can help both you and your spouse maintain financial health individually and as a couple.

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