QUESTION
What is my legal obligation on my wifes credit card bills if the cards are in her name only?
Asked on Jun 27th, 2011 on Estate Planning - Georgia
More details to this question:
Am I obligated to my wife's credit card charges if she dies or defaults if they are not joint accounts? The bank savings account, house, investments, vehicles, and etc. are in both our names, should that be changed or can they lay claim to these?
3 ANSWERS
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The law in each state is different but proper simple estate planning in Ohio can help avoid some of the pitfalls you addressed.
Answered on Oct 25th, 2012 at 1:46 PM
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In a community property state such as California, 100% of your community property is available to creditors for either of your debts as well as the separate property of the debtor. It does not matter whose name is on the account as any funds which originated from the money you earned from your job since you have been married is considered to be community property. The only way to protect up to half of the community property is to divide your assets into separate property via a transmutation agreement. However, the debtor spouse must receive at least 50% of the community property in order for the agreement to stand up to the creditors.
Answered on Jun 28th, 2011 at 10:40 AM
Glen Edward Ashman
If she dies, creditors usually get paid before you do, so her debts could affect your inheritance.
Answered on Jun 28th, 2011 at 9:34 AM