Sometimes during marriage, decisions are made quickly, and one spouse might sign an agreement without thinking about how it affects both people. This becomes a real concern when divorce is being discussed, and financial responsibilities start to separate. It helps to understand what the law may expect from each spouse in these situations.
In the video, Atty. Tyler Monahan and Atty. Tina Campbell of Turner-Monahan PLLC explain how debts work when one spouse signs a contract without the other, and what happens to those debts during divorce. All case evaluations are based on Texas Family Law. This content is for educational purposes only.
Understanding Contracts During Marriage
When a couple is married, and one spouse signs a contract without the other spouse signing, the legal responsibility can depend on who the contract is with and what the contract is for. At Turner-Monahan, we understand that this can be confusing when someone is thinking about divorce or already going through one.
IRS and Tax-Related Contracts
If the contract is related to taxes, such as something involving the IRS, a spouse may be held liable. There are situations where a spouse can later try to use what is called the innocent spouse provision. This may help protect them, but it depends on the details of the situation and what the IRS decides.
Contracts for Cars, Homes, and Credit
If the contract is for a car purchase, a home purchase, or other types of credit, and only one spouse signed it, then usually the creditor cannot come after the spouse who did not sign. Generally speaking, if a person did not personally sign the paperwork for the debt, they are not directly responsible to that creditor.
Community Property and Shared Benefit
In Texas, many debts taken during marriage are connected to the idea of community property. If a contract or expense was for the benefit of the marriage or household, a court may look closely at whether both spouses share responsibility.
For example, if one spouse signs a loan for a family vehicle or home repairs that everyone uses, the court may say both had a shared benefit. This does not give creditors a right to collect from the non-signing spouse directly, but it can affect how the debt is divided in the divorce.
What Can Happen in a Divorce
During a divorce, a court could order both spouses to share the debt. This is called being jointly and severally liable for debts. Even if a credit card company or lender cannot go after the spouse who did not sign, the court can still assign a percentage of that debt to them after the divorce.
So if the creditor goes after the spouse who did sign, and that person pays the full amount, the spouse who was ordered in the divorce decree to pay a percentage like 25 percent, 30 percent, or even 50 percent may have to reimburse the other spouse. The divorce decree is a contract, too. If a spouse does not follow what the decree says, the other spouse can sue for the amount they were supposed to pay.
Judgments After Divorce
If a spouse is sued for not paying their share, a judgment can be ordered against them. That judgment would then have to be paid. Even in that situation, the original creditor still cannot directly go after the spouse who never signed the contract. But the obligation to the former spouse remains because of what the divorce decree says.
What Does the Texas Family Code Say About Debt Responsibility
The Texas Family Code provides the legal foundation for all divorces, including uncontested cases. A few key provisions include:
Texas Family Code Section 3.102
This explains community property rights and responsibilities. It says that either spouse has the right to manage community property, and debts that support the marriage may still be considered community debt.
Texas Family Code Section 3.201
This explains that creditors are limited to collecting from the spouse who actually signed the contract, unless special conditions apply. It helps protect a spouse who never agreed to the debt in the first place.
Texas Family Code Section 7.001
This section states that the court will divide community property and debts in a way that is just and right. This means the judge looks at fairness, not always a 50-50 split. If a spouse created debt without the knowledge of the other and only they benefited, the court may order them to take more responsibility.
Texas Family Code Section 7.002
This part deals with reimbursement claims. If one spouse paid more than their share or used community income improperly, the other spouse can request repayment through the divorce decree.
Hire An Experienced Fort Worth, Texas, Divorce Attorney
Debt can feel overwhelming during divorce, especially when a spouse did not agree to a contract in the first place. Learning how Texas law views these issues can help protect both finances and peace of mind. At Turner-Monahan, we encourage anyone facing this situation to consult with a family law attorney so the right steps are taken from the start.
Schedule a free, no-obligation consultation with Attorney Tyler Monahan to discuss the details.
Check our website for more information about our services. Plus, don’t forget to go through our blog to find out more about your case. There is tons of information on divorce and answers to unique questions like “How to Handle Holidays After a Divorce: Visitation Tips”
FAQs Regarding Divorce
Divorce cases are unique, so you will have many questions. To save you time and hassle, here are some topics that revolve around the area. For more information, contact our firm, Turner-Monahan, PLLC.
Disclaimer
The commentary and opinions are for informational and educational purposes only and are not intended to provide legal advice. You should contact an attorney in your state for legal advice concerning any particular issue or problem. You can become a client and enter the attorney-client privilege only after hiring Turner-Monahan, PLLC, by signing a written retainer agreement.
