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eddfsf's questions about community property debt in Texas

eddfsf's questions about community property debt in Texas

Old Jun 27th 2012, 7:06 pm
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Default eddfsf's questions about community property debt in Texas

Hello again everyone, this might be the worng place to post - so apologies first off.

I have been speaking to a friend who practises law in the UK and he made me aware of certain laws in Texas relating to marriage.

My wife to be has a large amount of debt remaining from University - am I right in thinking that if we are married in Texas, I would inherit that debt?

This concerns me slightly, so if anyone has any experience it would be greatly appreciated
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Old Jun 27th 2012, 8:57 pm
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Default Re: eddfsf's questions about community property debt in Texas

Originally Posted by eddfsf View Post
Hello again everyone, this might be the worng place to post - so apologies first off.

I have been speaking to a friend who practises law in the UK and he made me aware of certain laws in Texas relating to marriage.

My wife to be has a large amount of debt remaining from University - am I right in thinking that if we are married in Texas, I would inherit that debt?

This concerns me slightly, so if anyone has any experience it would be greatly appreciated
Hi there.

I moved your post to the General USA forum, as it deals with debt and community property, rather than immigration.

I don't know how it works in Texas, or how it works with those debts. But I can tell you that here in Arizona, it's a community property state, which means that a spouse would be responsible for some of the other spouse's debts.

My late husband and I both had student loan debts we were paying off during our marriage. We also had credit cards in separate names. When he passed away, I was not responsible for paying his student loans anymore...they got written off. But I was responsible for paying his credit card debt, even though my name was not on the card or the account...but simply because we were married and I inherited that debt. Fortunately his life insurance payment took care of that debt.

You'll need to see what the laws are regarding community property and debt in the state of Texas, and you'll also need to see how that particular student loan will be handled, if something should happen to your wife.

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Old Jun 27th 2012, 10:51 pm
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Default Re: eddfsf's questions about community property debt in Texas

Where you marry is irrelevant. Where you reside is a different story.

It also depends on what type of student loan it is...if Federal, it's attached only to her forever. If it's a normal loan through a bank or other lending facility, here in Texas will mean that yes, if you two divorce (assuming you are both RESIDENTS of Texas) then yes, you could be liable for half, just like you should get half of all assets.

Now just being married to her doesn't require that you PAY her debts, just this will come up in a divorce...then that too will be dependent on which state you live at that time.

Prenups can circumvent such...a friend here in Texas did that as her new husbands debts to his first wife were of concern to her in order to protect what she came into the marriage with.

Last edited by Bomjeito; Jun 27th 2012 at 10:52 pm. Reason: To add clarity
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Old Jun 27th 2012, 11:31 pm
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Default Re: eddfsf's questions about community property debt in Texas

Originally Posted by Bomjeito View Post
... if you two divorce (assuming you are both RESIDENTS of Texas) then yes, you could be liable for half, just like you should get half of all assets.

...just this will come up in a divorce...
Divorce....or Death, too.

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Old Jun 28th 2012, 12:30 am
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Default Re: eddfsf's questions about community property debt in Texas

Originally Posted by Bomjeito View Post
If it's a normal loan through a bank or other lending facility, here in Texas will mean that yes, if you two divorce (assuming you are both RESIDENTS of Texas) then yes, you could be liable for half, just like you should get half of all assets.
Just out of curiosity does Texas distinguish between debts and assets which existed prior to the marriage and ones which came into being after the marriage?

California is also a "community property" state but, as far as I know, it also recognizes property (and, presumably, debts) acquired before the marriage or after a divorce as being "separate property" which, as it's name suggests, is not shared between the two parties.
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Old Jun 28th 2012, 3:08 am
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Default Re: eddfsf's questions about community property debt in Texas

Originally Posted by md95065 View Post
Just out of curiosity does Texas distinguish between debts and assets which existed prior to the marriage and ones which came into being after the marriage?

California is also a "community property" state but, as far as I know, it also recognizes property (and, presumably, debts) acquired before the marriage or after a divorce as being "separate property" which, as it's name suggests, is not shared between the two parties.
That is why I used the word "could." Best to put it in a prenup or agreement if one wants to be sure to ensure separation.

I'm from a state that isn't community property so it was as what you brought in, you bring out. Then I moved to Texas. Best is for OP to get a consult with a Texas-based attorney.
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Old Jun 28th 2012, 4:41 am
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Default Re: eddfsf's questions about community property debt in Texas

Originally Posted by Noorah101 View Post
Divorce....or Death, too.

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I know I am being insensitive here, but in the event of divorce the debts/assets are (arguably) split 50/50, right?

In the event of death, it is 100/0 no? Not sure what difference the State you are in makes..
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Old Jun 28th 2012, 4:45 am
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Default Re: eddfsf's questions about community property debt in Texas

Originally Posted by RICH View Post
I know I am being insensitive here, but in the event of divorce the debts/assets are (arguably) split 50/50, right?

In the event of death, it is 100/0 no? Not sure what difference the State you are in makes..
I don't know...I didn't have the experience as it pertains to divorce, only death. When the OP stated "inherit the debt", I assumed he meant if his spouse passes away. I wasn't even thinking of divorce.

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Old Jun 28th 2012, 5:38 am
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Default Re: eddfsf's questions about community property debt in Texas

Originally Posted by RICH View Post
I know I am being insensitive here, but in the event of divorce the debts/assets are (arguably) split 50/50, right?

In the event of death, it is 100/0 no? Not sure what difference the State you are in makes..
It is a little (actually, a lot) more complicated than that.

In both cases there are likely to be a mixture of shared and separately owned assets.

The shared assets are what would automatically pass to the survivor in the event of a death or potentially be split 50/50 in the event of a divorce.

The separately owned assets would stay with their respective owners in the event of a divorce or become part of the deceased's estate in the event of a death.

Similarly, I believe, with debts - you would not normally become responsible for your spouse's pre-existing debts when you marry them but, in the event of their death, the creditors could seek reimbursement from their separate estate. (which of course, would reduce the amount that could be passed on to the survivor).

... and, yes, state law does come into this since marriage, divorce and probate are all dealt with at the state level and all states are at least slightly different ...
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