What are the disadvantages of having joint debts with your spouse?
While in marriage we often want to share everything, when it comes to debts, sharing may not be the best road to take. Sharing debt may cause more conflict and contention than it solves in a marriage.
While there are some real advantages to joint credit card, mortgage or utility accounts, there are also some disadvantages. Here are some answers to the question, “What are the disadvantages of having joint debts with your spouse?”
- Both people are legally and equally responsible for the debt. If one spouse has little self-discipline and runs up huge credit card bills, their spouse is still just as much on the hook for the entire amount. Even if you never use the credit card, you will be hounded by creditors as much as your spouse if they rack up debt on a joint credit account.
- It can hurt both credit scores. If one spouse accumulates so much debt that they are unable to repay it, if both spouses are on these accounts, then their scores will both be negatively affected. This will make it nearly impossible for either party to get credit, possibly meaning that the couple will be unable to qualify for a home or even an apartment rental. On the other hand, if the spouses have separate credit accounts, perhaps one will have good enough credit to still qualify for a loan.
- Relationship problems. Joint credit often leads to disagreements, since people often have different credit use habits. If one partner uses the card too often or for items the other spouse does not want to spend money on, then arguments are likely to ensue.
- Credit becomes a weapon in a divorce or argument. Although it is childish, in the case of an impending or accomplished divorce or argument, a spouse may choose to injure their partner by racking up thousands in credit card debt and not paying it. Particularly if the spender is already in credit difficulty, they really have little to lose by maxing out a card or being behind on a few payments. And even after a divorce is finalized, if you have a joint credit card, you’re still tied by money until the card is paid off completely. Sticky.
- It’s hard to buy a gift or surprise. If every account is shared, your spouse is likely to see that you bought them a birthday gift or holiday surprise. Keeping a little autonomy retains your independence.
