Open conversations about money before and during marriage can help couples avoid financial surprises and protect their future.
Understanding the difference between marital and separate debt is key to knowing who may be responsible for repayment.
Prenuptial agreements, financial transparency, and shared goals can help couples better prepare for potential financial challenges.
Marriage often means building a life together — including sharing financial goals, expenses, and responsibilities. But when debt enters the picture, the idea that “what’s yours is mine and what’s mine is yours” can become more complicated.
Whether one partner enters a marriage with existing debt, a couple takes on new financial obligations together, or a divorce changes who is responsible for repayment, understanding how debt is handled can help protect your financial future.
While no one expects a marriage to end in divorce, planning ahead and having open conversations about money can make a major difference. Kelly Frawley, partner in the matrimonial and family law practice at Sterlington PLLC, explains what consumers should know about marital versus separate debt, how debt may be divided during divorce, and the steps couples can take to protect their financial standing before and after marriage.
Protecting your finances
No matter what stage you’re in with your partner, protecting your finances should always be top of mind.
“During a marriage and divorce, spouses should be transparent and forthcoming with information about their finances,” Frawley said. “The steps to protect your assets should start as early as reasonably possible before the marriage and no later than early in the marriage.”
Frawley shared some of her best tips for having open, transparent conversations about finances with your partner:
Start these conversations before marriage. This includes candid discussions with your partner about their then-current savings, debts, and expenses, as well as intentions about savings and a day-to-day budget.
Share credit scores. A party’s assets and budget might not reflect their complete financial circumstances.
Consider reviewing your cash flow at least once a year. This could be at the time you gather tax documents to prepare tax returns, or at another time you decide on, to ensure you and your spouse are on the same page about spending, savings, and debt.
Marital vs. separate debt
If your soon-to-be spouse has excessive debt, Frawley recommends tackling the issue as an economic partnership.
“A plan to pay down the debt should be discussed, which should include what source of funds will be used to pay it down,” she said. “One needs to consider that his or her money applied to pay the other party’s debt is not likely to be recouped in a divorce, and they should not expect a credit in the event of a divorce.
“Also, I suggest you understand the reasons your partner incurred the debt to preempt additional debt being incurred during the marriage.”
When it comes to marital versus separate debt, Frawley recommends checking with your specific state’s guidelines.
“Typically marital debt will be a joint responsibility and the parties’ marital net worth will be marital assets less marital debts,” she said. “Separate debt might be debt a party incurred prior to the marriage or in connection with his or her separate property.”
How can a prenuptial agreement help?
Frawley explained that a prenup agreement can effectively help protect an individual from accruing debt during the marriage.
“It is common practice to address the distribution of liabilities in the event of a divorce [in a prenup],” she said. “Two common approaches include a provision that a party will be responsible for debt associated with their separate property and debt incurred by them before the marriage (e.g., student loans).”
Money tips before marriage
Before things become legally binding, Frawley has some money tips to help couples navigate tough conversations.
“Discuss goals for savings and retirement, as well as your expected lifestyle,” she said. ”For example, does one partner desire to vacation several times a year, while the other one wants to save for retirement or invest in a secondary home? Ensuring alignment is key; at a minimum, one should understand their partner’s expectations.”