Sarah Sharkey
6 min read
When you get married, it might feel like a relief to pass off all financial duties to your spouse. But choosing to offload your financial responsibility can come at a cost.
Take, for example, the following scenario: A wife recently checked into her household finances and discovered that there was $31,000 in credit card debt. With her husband controlling every cent, she doesn’t have clear insight on where the money goes.
The debt is shocking to her, especially because she earns $120,000 per year. Now, she wants to learn how to protect herself financially, especially in the event the couple gets divorced.
Although the average household with credit card debt carries a credit card balance of $6,065, the high interest rates typically associated with credit cards can make it difficult to climb out of this hole.
But the real problem doesn’t lie only with credit card balances. After all, financial infidelity isn’t just about secret spending. This couple is likely also dealing with a lack of financial literacy.
According to a recent study, only around 48% of adults in the U.S. possess a baseline level of financial literacy. Without the right knowledge, it can be difficult to get a household’s financial situation under control, even without the added complications of a controlling spouse.
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Married couples often have shared assets, like a home or bank account. In addition to shared assets, many married couples share liabilities, like a mortgage or credit card debt. But when one partner doesn’t know about shared debts, that puts them at financial risk, especially during a divorce.
Many married couples often share joint responsibility for debts accumulated during the marriage. For example, if both partners open a joint credit card, they are both legally responsible for repaying that debt.
Even if you and your partner actively choose to keep your finances separate and avoid joint credit cards, state law might dictate that both partners are still on the hook for any outstanding debts. For example, if you live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington or Wisconsin, you’re on the hook for debt your partner assumes.
