What is a community property state?
In essence, your spouse's debts are also your debts.
In community property states, all assets and debts that are taken on during your marriage (with few exceptions) are considered equally owned by both spouses. In the event of divorce, anything accumulated during the marriage is split 50/50.
It doesn’t matter who’s name is on the asset or debt since the legal union binds both individuals. So, all financial assets that come into the marriage are typically considered community property.
If Jane’s husband incurred any debts before the marriage or after a legal separation (such as divorce), Jane would be off the hook because, as Orman pointed out, “they are considered his debts and you would not be responsible for those unless you specifically agreed to take on such debts.”
While the majority of U.S. states don’t have community property laws, these laws currently apply in nine states, including Arizona, California and Texas. That being said, it is possible to opt out if you sign a prenuptial agreement before the marriage.
Whether you want to merge or split your finances with your spouse, you can get ahead of the game by speaking to a financial advisor to guide you in taking the right steps. This is especially important if you own property together or if either of you has an extensive portfolio.
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Learn MoreWhat to do if you get stuck with your spouse’s debt
In the unfortunate event that you get stuck with your spouse’s debts, there are some things you can do to help your financial situation.
Start by reviewing your finances and create a spreadsheet that includes any other outstanding personal debts and an estimate of your monthly expenses. Budgeting aggressively or consolidating the debt is a possible option.
For example, credit card interest rates tend to be quite high, but by consolidating the debt with a personal loan through Credible, you can get much lower interest rates. That way, you can manage payments more efficiently and prevent the debt from ballooning even more.
Credible is an online marketplace of vetted lenders where you can browse the best personal loan rates for you and opt to consolidate your debt.
With interest rates as low as 6.94% and repayment schedules ranging from 24 to 84 months, you’ve got time and flexibility.
In the end, ensure you and your spouse are in good financial standing before you say, “I do.”
Make sure you have savings
Jane can also offset some of the debt by having savings to fall back on.
It’s important for anyone — regardless of marital status — to have money saved in case of emergency or in this case, incurred debts from a spouse.
One way to bulk up your savings is with a high-interest savings account.
You can check out the Moneywise list of Best High Yield Savings Accounts of 2025 to find some great savings options that earn you more than the national average of 0.4% APY.
Leave security for your family
Whether it’s you or your other family members saddled with debt, having financial security guaranteed by life insurance can mitigate the financial impact of losing a loved one.
By opting for term life insurance through Ethos, you can help ensure that your family will be taken care of when you’re no longer there.
With Ethos, you can secure coverage in just 10 minutes online or via phone and approval is guaranteed regardless of any pre-existing conditions.
Ethos also gives you the flexibility to select coverage amounts ranging from $2,000 to $100,000.
With fixed rates, you can rest assured that your rates will never go up on your policy. Ethos offers a 30-day money-back guarantee if you aren’t completely satisfied with their services.
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