FAQs in Marital Liability or Debt

Q. - Am I liable for my spouse' debt or liability in Texas?

A. - Not necessarily. 

a)  A person is personally liable for the acts of the person's spouse only if:

(1)  the spouse acts as an agent for the person; or

(2)  the spouse incurs a debt for necessaries as provided by Subchapter F, Chapter

(b)  Except as provided by this subchapter, community property is not subject to a liability that arises from an act of a spouse.

(c)  A spouse does not act as an agent for the other spouse solely because of the marriage relationship.

Q. - What are the rules for marital liability?  Am I liable for my spouse's financial mistakes?

A. - The rules allow for joint spousal liability in Texas only as follows:

(a)  A spouse's separate property is not subject to liabilities of the other spouse unless both spouses are liable by other rules of law.

(b)  Unless both spouses are personally liable as provided by this subchapter, the community property subject to a spouse's sole management, control, and disposition is not subject to:

(1)  any liabilities that the other spouse incurred before marriage; or

(2)  any nontortious liabilities that the other spouse incurs during marriage.

(c)  The community property subject to a spouse's sole or joint management, control, and disposition is subject to the liabilities incurred by the spouse before or during marriage.

(d)  All community property is subject to tortious liability of either spouse incurred during marriage.

[Note:  Please consult with one of our Texas Marital Property Attorneys in segregating marital property before or after marriage, so as to limit spousal liability.  Through proper professional planning in marital and estate planning, liabilities can be avoided to minimize the risks to the community or individual estates]

Q. - What is a claim for Economic Contribution to the Marital Estate?

A. - "economic contribution" is the dollar amount of:

(1)  the reduction of the principal amount of a debt secured by a lien on property owned before marriage, to the extent the debt existed at the time of marriage;

(2)  the reduction of the principal amount of a debt secured by a lien on property received by a spouse by gift, devise, or descent during a marriage, to the extent the debt existed at the time the property was received;

(3)  the reduction of the principal amount of that part of a debt, including a home equity loan:

(A)  incurred during a marriage;

(B)  secured by a lien on property; and

(C)  incurred for the acquisition of, or for capital improvements to, property;

(4)  the reduction of the principal amount of that part of a debt:

(A)  incurred during a marriage;

(B)  secured by a lien on property owned by a spouse;

(C)  for which the creditor agreed to look for repayment solely to the separate marital estate of the spouse on whose property the lien attached; and

(D)  incurred for the acquisition of, or for capital improvements to, property;

(5)  the refinancing of the principal amount described by Subdivisions (1)-(4), to the extent the refinancing reduces that principal amount in a manner described by the appropriate subdivision; and

(6)  capital improvements to property other than by incurring debt.