A California woman asked Suze Orman if she'd be responsible for her husband's credit card debt

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05-07-2025

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In an episode of Suze Orman's Women & Money podcast, Jane from California wrote into the show to pick Orman's brain about her husband's credit card debt.
Her question for the personal finance guru: 'If something were to happen to my husband, am I responsible for his credit card debt?'
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Jane added that her name is not tied to anything related to her husband's credit card. However, Orman and her co-host, KT Travis, were quick to point out that this was irrelevant anyway — because Jane lived in a community property state.
'You most likely will be held responsible for your husband's credit card debt that was incurred during the marriage,' Orman explained. Here's what this means for Jane.
In essence, your spouse's debts are also your debts.
In community property states, all assets and debts that are taken on during your marriage (with few exceptions) are considered equally owned by both spouses. In the event of divorce, anything accumulated during the marriage is split 50/50.
It doesn't matter who's name is on the asset or debt since the legal union binds both individuals. So, all financial assets that come into the marriage are typically considered community property.
If Jane's husband incurred any debts before the marriage or after a legal separation (such as divorce), Jane would be off the hook because, as Orman pointed out, 'they are considered his debts and you would not be responsible for those unless you specifically agreed to take on such debts.'
While the majority of U.S. states don't have community property laws, these laws currently apply in nine states, including Arizona, California and Texas. That being said, it is possible to opt out if you sign a prenuptial agreement before the marriage.
Whether you want to merge or split your finances with your spouse, you can get ahead of the game by speaking to a financial advisor to guide you in taking the right steps. This is especially important if you own property together or if either of you has an extensive portfolio.
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Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it
In the unfortunate event that you get stuck with your spouse's debts, there are some things you can do to help your financial situation.
Start by reviewing your finances and create a spreadsheet that includes any other outstanding personal debts and an estimate of your monthly expenses. Budgeting aggressively or consolidating the debt is a possible option.
For example, credit card interest rates tend to be quite high, but by consolidating the debt with a personal loan, you may be able to get much lower interest rates. That way, you can manage payments more efficiently and prevent the debt from ballooning even more.
In the end, ensure you and your spouse are in good financial standing before you say, 'I do.'
Another way to consolidate your debt is by tapping into your home's equity through a Home Equity Line of Credit (HELOC).
A HELOC is a secured line of credit that leverages your home as collateral. Depending on the value of your home and the remaining balance on your mortgage, you may be able to borrow funds at a lower interest rate from a lender as a form of revolving credit.
Rather than juggling multiple bills with varying due dates and interest rates, you can consolidate them into one easy-to-manage payment. The results? Less stress, generally reduced fees, and the potential for significant savings over time.
Jane can also offset some of the debt by having savings to fall back on.
It's important for anyone — regardless of marital status — to have money saved in case of emergency or in this case, incurred debts from a spouse.
One way to bulk up your savings is with a high-interest savings account.
You can easily compare multiple online banks offering high-yield savings accounts with 4% or more in annual interest in a matter of minutes. Many options now offer $0 monthly fees and don't require a minimum balance to earn their high APY.
Whether it's you or your other family members saddled with debt, having financial security guaranteed by life insurance can mitigate the financial impact of losing a loved one.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.