Community Property: Why Need To Maintain financial Freedom After Marriage?

Loving couples can find great use of dual credit cards. Both can use it freely. Likewise both can pay off each other’s debts. But what when the marriage is on the docks and parting ways is inevitable? Who is going to pay back? To the creditor, your marital status is inconsequential. As both enjoyed the benefits before the romance turned sour, both are liable to clear the debts after the divorce.

This means if Tim defaults, then both Tim’s and Jane’s credit will suffer. At the same time collection calls will chase both Tim and Jane. And protesting “we are no longer couples” just won’t suffice. As no one is aware of what destiny has in store, it is wise to maintain credit independence or financial freedom within wedlock. It has nothing to do with whether or not you love or trust your spouse.This has got everything to do with a practical and rational approach.

What is Community Property and Community Property States.

In some states, even if one of the partners has applied for the card, both partners are liable for the debt. These are called “Community Property” states. Community property states include, California, Arizona, Alaska, Idaho, Nevada, Louisiana, New Mexico, Wisconsin, Washington and Texas. Applying for joint credit cards makes little sense, particularly when you can add your spouse as an “authorized user” on your existing cards. So both can use the card freely, and won’t have any liability whatsoever, unless you reside in the above mentioned states. Jointly applying for a card does a world of good to the issuer, for it will have two liable parties and not one for the same credit.

About the Author

Sandra
I am working as Editor in Chief for Financeninvestments.com. Writing on Financial Topics is my passion. You can find me on , Seeking Alpha Instablogs or join our Facebook Community, s. FNI is a great Community for financial bloggers and writers. Get everything you wanted to know about your finance and investment related matters such as mutual funds, banking, retirement, economics and much more.

Be the first to comment on "Community Property: Why Need To Maintain financial Freedom After Marriage?"

Leave a comment

Your email address will not be published.


*