Who Owes What Debts in a Common Law State?
If you live in a common law property state (see “The Community Property States,” above), who owes what debts depends on when the debt was incurred and, in some instances, what the debt was for. Debts Incurred Before Marriage or After Divorce All debts incurred by a spouse prior to the marriage or after the marriage has ended are that spouse’s individual debts. EXAMPLE: Ted owes $8,000 on a professional video system he purchased before he married Jill. The $8,000 is Ted’s separate debt, and only he is responsible for it. Debts Incurred During Marriage All debts incurred by the spouses jointly during the marriage are joint debts. All debts incurred by an individual spouse during the marriage but before permanent separation are separately owed by that spouse unless any of the following is true: • The creditor looked to both spouses for repayment or considered both spouses’ credit information. • The debt was incurred for family necessities such as food, clothing, and shelter. • The debt wa
