[hl0m4n]

so brining a dead thread back to life, my friend and his wife are still debating on what to do. and so im asking you guys about some opinions so i can help him (why they didn't see a lawyer yet, is beyond my point).

1. is there a way to have a married couple have finances seperate like a divorced couple?
2. lets say the wife is using her credit card too much, is the husband reliable for her money owed since they are married?
3. same also applies for the house (registered under the husband), since they are married and the wife has many debts can the house be effected b/c they are married?
4. in the long run, lets say they stay together but when the wife passes away with alot of debt, will the husband & children be reliable to pay it back? if the husband and wife both pass away, will the children be reliable to pay back the debts assuming they are 21+ years old?

[MadDog]

Is NY a community property state ??

[Sara]

4. Is no. I've already questioned this. The state cannot come after you for someone elses debt is what I was assured. Simplest way put.

[Seminole]

Originally Posted by Sara504

4. Is no. I've already questioned this. The state cannot come after you for someone elses debt is what I was assured. Simplest way put.

Unless you are a cosigner, guarantor, or in some other way have your name on the debt (i.e. shared credit card)

[hl0m4n]

Originally Posted by Seminole

Unless you are a cosigner, guarantor, or in some other way have your name on the debt (i.e. shared credit card)

well lets say the debt was just the wife's with no cosigner etc, wouldn't the creditors/debt collectors take out from your assets like savings, etc and the husband/children get what ever is left over?

[Seminole]

Originally Posted by hl0m4n

well lets say the debt was just the wife's with no cosigner etc, wouldn't the creditors/debt collectors take out from your assets like savings, etc and the husband/children get what ever is left over?

That I'm not a 100% sure about. I would seem to think so, because although the husbands name is not on the debt, it seems like they could go after her estates assets which would include any join accounts. I'll defer to someone who knows more about it than me.

[Sara]

Originally Posted by Seminole

Unless you are a cosigner, guarantor, or in some other way have your name on the debt (i.e. shared credit card)

Yeah, what I meant was if your names not on it then the they cant come after you for someone else's debt.

[MadDog]

Originally Posted by Sara504

Yeah, what I meant was if your names not on it then the they cant come after you for someone else's debt.

Community property states - such as CA - are different than other states.

Checking with an attorney in your state will clear up any misconceptions on whether "someone" can come after you.

[Maestro]

There is plenty of example where people get married and keep finances separate, and share house hold expense but everything else is his or her responsibilities such as credit cards and car loans and the such. The problem is most states have community property rules which basically says what his is hers and what hers is his. They might not be able to come after the other for things that only contain one persons name and are the sole responsible person, however, if they have things which are owned jointly or they combined their money on, those things become fair game. If they own a house together, even with only one person name on the dead the creditor could still come after it if a debt needs to be paid.

This is over simplifying it, they will need to consult a lawyer in their state to know exactly what the rules are and how the courts have ruled in the past. I can also tell you, rules of how property is divide are different than how debt is paid off. Creditors usually are not afforded much, they generally fall at the end of the line.

There is a reason you're required by law to place an obituaries in the paper, it is a public notice to those who feel they are owed money by that person, it gives them so many days to file a legal claim to any money they exist in the estate of the person.

There are a number of ways to keep this from happening. One is to put everything you own in a legal trust that automatically transfers to the beneficiary. Again these are tricky and vary by state and it takes a good lawyer who knows what they are doing to do it right.

There is no clean way to do a DIY method to keep things separate once people become married. In some states living together for too long invoke common law marriage and community property rules.

Most of these rules were set up to protect the spouse from asshole husbands, but that allow creditors to use it to their advantage as well when it comes to collecting debt some times.


I am not a lawyer, the above is just my basic understand how things work. I know enough to know it really requires a lawyer.

[jlaw]

NY is equitable distribution not community property. If you google it you will find some good resources that explain marital assets and liabilities.

[Seminole]

Originally Posted by MadDog

Community property states - such as CA - are different than other states.

Checking with an attorney in your state will clear up any misconceptions on whether "someone" can come after you.

+1

Just based on the fact you are married in some states means you have some liability to the other parties debt. You can even leave your wife out of your will in some states, and state law says she is entitled to get some type of compensation when you die.

[yomama69]

To clear up some misconceptions....community property states have community property as well as separate property, and community debts as well as separate debts. OP, I'm not licensed in NY so I can't give you any advice as to NY Law on the matter. Please seek out appropriate licensed counsel to aid you with your legal matters. Do not take advice from forum members who are not attorneys, such as any of the previous posters in this thread....except for jlaw (on Florida issues only).