California woman in community property state like California is responsible for husband's credit card debt

In a recent episode of Suze Orman’s Women & Money podcast, a listener named Jane from California sought advice on her husband’s credit card debt. Orman clarified that in community property states like California, spouses are equally responsible for debts incurred during the marriage. This applies even if the debt is in one spouse’s name.

Community property laws in states like California mean that assets and debts acquired during a marriage are considered joint property. This includes credit card debt, regardless of whose name is on the account. It’s crucial for couples to understand the financial implications of community property laws, especially in the event of divorce or death.

If Jane’s husband had debts before the marriage or after legal separation, she wouldn’t be liable unless she agreed to take them on. Community property laws exist in nine states, and couples can opt-out with a prenuptial agreement. Seeking financial advice and understanding your state’s laws is essential for managing joint finances effectively.

To alleviate the impact of a spouse’s debts, consider consolidating them with lower interest rates through options like personal loans or Home Equity Lines of Credit (HELOCs). Building savings and securing term life insurance can also provide financial security. Taking proactive steps to manage debts and protect assets is crucial for financial stability in a marriage.

Read more at Yahoo Finance: A California woman asked Suze Orman if she’d be responsible for her husband’s credit card debt