- Minnesota is a common law state for family law.
- Spouses are not responsible for the other spouse's premarital debt.
- Consider a pre-nuptial agreement to spell out your liabilities.
Is a new spouse responsible for the other spouse's debt upon marriage in Minnesota?
My fiancée claims that once we are married in the state of Minnesota that he will be responsible for all my current debt. So we can't get married until I pay it off. Is there any truth to this? Note: he had to declare bankruptcy and had their home foreclosed on because his first wife ran up $250,000+ in gambling debts.
Your fiance is incorrect if you plan to reside in Minnesota, if my understanding of Minnesota family law is correct (attorneys licensed to practice in Minnesota are welcomed to comment below). Minnesota is a common-law state when it comes to family law, unlike Wisconsin, California, Texas and the other community property states. If you plan to reside in one of the community property states then your fiance's interpretation of the law is correct.
Under Minnesota 518.58 Division of Marital Property, dividing property at divorce, "The court shall base its findings on all relevant factors including the length of the marriage, any prior marriage of a party, the age, health, station, occupation, amount and sources of income, vocational skills, employability, estate, liabilities, needs, opportunity for future acquisition of capital assets, and income of each party. The court shall also consider the contribution of each in the acquisition, preservation, depreciation or appreciation in the amount or value of the marital property..."
This language is contrary to community property doctrine and is consistent with common-law family law.
Recommendation
It is understandable your fiance would be reluctant to marry someone with debt after being married to a partner who racked-up $250,000 in gambling debt and caused a foreclosure. If you plan to reside in Minnesota then your fiance has state law on his side. However, to protect both of your interests if you move to a community property state unexpectedly, then consider a pre-nuptial agreement that spells out your rights and obligations regarding the debts you incur before and during the marriage. Consult with an attorney who has experience in family law to draft such an agreement.
I hope this information helps you Find. Learn & Save.
Best,
Bill
www.bills.com/
Debt statistics
Debt is used to buy a home, pay for bills, buy a car, or pay for a college education. According to the NY Federal Reserve total household debt as of Q4 2023 was $17.503 trillion. Auto loan debt was $1.607 trillion and credit card was $1.129 trillion.
A significant percentage of people in the US are struggling with monthly payments and about 26% of households in the United States have debt in collections. According to data gathered by Urban.org from a sample of credit reports, the median debt in collections is $1,739. Credit card debt is prevalent and 3% have delinquent or derogatory card debt. The median debt in collections is $422.
The amount of debt and debt in collections vary by state. For example, in Virginia, 25% have any kind of debt in collections and the median debt in collections is $1647. Medical debt is common and 14% have that in collections. The median medical debt in collections is $690.
Avoiding collections isn’t always possible. A sudden loss of employment, death in the family, or sickness can lead to financial hardship. Fortunately, there are many ways to deal with debt including an aggressive payment plan, debt consolidation loan, or a negotiated settlement.
