Will a Prenup Protect Me from Having to Pay Off My Future Spouse’s Debt?

When many couples think about prenuptial agreements, they think about division of assets, such as bank accounts, jewelry, or homes. However, prenuptial agreements also cover the division of debts in a divorce. Florida, like most states, uses an equitable distribution process to divide up both assets and debts when a couple divorces. This means that in the absence of a prenuptial agreement, one partner may be responsible for paying off the debt of the other.

A prenuptial agreement can specify which debts will remain separate debts and which debts are marital debts. Debts that a partner incurred before marriage are considered separate debt. Student loans or car loans are common types of debt that one or both partners may have before entering the marriage.  Typically, during a divorce, the court will assign each party responsibility for their own debts incurred before marriage, however, having a prenuptial agreement ensures this separation and manages each partner’s expectations.

It can become trickier if one partner owns a home with a mortgage before marriage. In this case, a prenuptial agreement could specify if the homeowner will continue to fully pay the mortgage or if the other partner will contribute to the mortgage as well. If both partners pay the mortgage, the agreement can specify what happens to the house as well as the marital equity in the house if the couple divorces.

A prenuptial agreement can also specify what happens if one or both partners take on debt during the marriage. For example, it could specify that each partner will maintain their own credit cards and each will be responsible for paying their own credit card debt. Or, if the couple has a joint credit card, the agreement could delineate what percent of the debt each partner would be responsible for paying in the event of a divorce. Other types of debt that are often covered in prenuptial agreements are student loan debt, mortgage debt, medical debt or business debt.

It’s important to note that your prenuptial agreement does not protect you if you co-sign or guarantee a loan with a third-party creditor for your partner. For example, if you guarantee a car loan for your partner and the partner defaults on the loan, you are still responsible for paying it back, regardless of whether or not you have a prenuptial agreement.

Having a prenuptial agreement is the best way to protect yourself from having to pay back your partner’s debts. Troy Legal is an experienced family law firm that has been helping South Florida families for more than 15 years. Before you say, “I do,” contact us for a free initial consultation to discuss protecting yourself with a prenuptial agreement.

Troy Legal, P.A. was founded in 2009 and serves clients throughout South Florida. Troy Legal, P.A., specializes in Marital and Family Law, providing reputable legal services for prenuptial and co-habitation agreements, paternity cases, adoption matters, alimony and child support, time sharing and parenting plans, drafting of qualified domestic relations orders (qdros), mediation services, equitable distributions, collaborative law, post-judgement modification and enforcement, domestic violence cases, and dissolution of marriage or divorce.  Troy Legal, P.A. is dedicated to serving clients through compassionate and aggressive representation, while upholding the highest degree of ethical standards.