Liability for Spouse's Debts in Community Property State

[Tayler]

In a community property state Like Wisconsin, upon divorce of death of a spouse, what is the liability for that spouse's credit card and other debt that was incurred without the other person's knowledge? My sister lives in Wisconsin and her husband has well over $10,000 of credit card debt that she has just found out about. They had just paid off all credit cards and he was supposed to have closed them. She has since found current bills with current charges AND he has put her name on some of the credit cards without her permission. He is much older (mid-70's) and she is concerned about what will happen if he dies or if she divorces him before the debt is paid. Will she be responsible for his debt and can she lose her house because of it. She doesn't make enough money to pay this debt on her own.

 

[irish223]

Generally, community property equates to community debt. Your sister needs to talk to a lawyer about her options. She may be able to file for legal separation for financial protection while still living with her husband, or she may want to file for divorce. There may also be something she can do about her husband using her name to open credit cards, or about the debt he has already incurred.

For now, she might try a 'security freeze' to prevent her husband from opening any more credit cards in her name (or in his name if she can talk him into it!) Here's more info:
http://www.pirg.org/consumer/credit/statelaws.htm