Law of Attraction Relationship Information

Debt, Marriage, Lawyers, Guns and Money

Debt  is often a major issue between spouses, especially during the course of marriage. Prior to tying the knot, most people have developed their own habits of saving money, budgeting, paying bills and spending, in general. While one may balance their accounts daily, another may wait until the end of the week to do so. One person may prefer to have their bill payments automatically debited from their checking account, while the other prefers to mail their payments. These methods of budgeting and spending may have worked fine before marriage, but afterwards, these spending actions may not go over as smoothly.

Unfortunately, misunderstandings about money in marriage lead to frequent arguments and frustrated feelings. In order to avoid such clashes, smart couples engage in discussing and creating realistic plans about how they will manage their marriage, debt and finances. Some people even get a prenuptial agreement, and get acquainted with federal and state law concerning marriage and the commingling of assets and debts.

Here are a few of the most common concerns about marriage debt, joint finances and assets:

Does bad debt one person has before the marriage attach it to their new spouse too?

No. After marriage, debt that a person acquired beforehand is not automatically attached to a new spouse. However, depending upon how finances are handled after marriage, a new spouse can feel the sting of their spouses former debt. For instance, commingling assets after marriage can lead a creditor to attaching those assets in order to collect on a debt. The IRS is also empowered to place a lien on refunds due to unpaid taxes, student loans or government loans. In cases where a couple has filed a joint tax return, many are surprised to find out that the refund they were expecting is reduced or will not be received at all.

If someone incurs excessive debts after marriage, are both spouses liable?

Maybe. Mostly, a firm answer depends upon the state in which the couple resides. Also, if one spouse files bankruptcy as a debt management strategy, creditors can pursue repayment from a non-filing spouse if the two were legally married at the time that the debt was incurred. Debt liability is a risk to a marriage. Couples can forearm themselves against the risk by being aware of federal and state laws concerning any issues of debts and joint assets in a marriage.

How do the courts view real property that a spouse owned before marriage?

Typically, property owned before marriage is considered separate property of the individual who held it prior to the marriage. However, if the non-owning spouse ever contributes their own money toward mortgage payments, repairs to the property, general maintenance or helps make improvements to the property, or if this spouse has free access to the property, the courts may then view the propertys ownership a little differently. Again, this depends on the state in which the couple resides, how long a couple is married, as well as the specifics regarding the time and money that the non-owning spouse put into the property.

The financial considerations of marriage, debt and the commingling of assets are all very important discussion points for people who are considering spending their lives with another. These issues present obstacles to some, but people that aren't afraid to discuss and plan for them find they fare a lot better resultantly. Couples that sign prenuptial agreements or are familiar with the applicable state and federal laws about debt, marriage, and protecting assets, these issues aren't a surprise.