ADVERTIsem*nT
Love
by Doug Murray
May 7, 2020
When saying their wedding vows, a lot of people don’t think too much about the “for poorer” bit. However, financial trouble is a major contributor to unhappy marriages. In order not to get your hopes of eternal marital bliss dashed, it helps to know where you stand financially before tying the knot. Should you marry someone with debt? We’ve rounded up advice from the experts including the Financial Consumer Agency of Canada and RateSupermarket to help you make the decision.
https://www.canada.ca/en/financial-consumer-agency.html
https://www.ratesupermarket.ca/blog/what-happens-to-debt-when-you-get-married/
Getty Images
1 / 10
Your partner’s debt isn’t yours, but…
Let’s start with the good news. The pre-existing debt your partner brings to the marriage doesn’t become yours, and your doesn’t become your partner’s. Each of you is only responsible for the debt accrued in their name. There are caveats, however.
RELATED: Financial money debt trends: Mistakes we're making that dig us deeper in the hole.
Getty Images
2 / 10
Your partner’s debt is yours if you co-signed
If you co-signed for a loan, you are both responsible for that debt. If one of you doesn’t pay, the creditor has every right to demand payment from the other and this will affect your credit score. So, before you both sign that mortgage with the best rate, be sure you both can afford it.
Getty Images
3 / 10
Marriage will affect student loan repayment assistance
When your partner has a huge student loan debt to pay off and applies for repayment assistance, they must report your income, even if you’re a common law partner rather than a spouse. This will affect how much the monthly payment will be. It’s one thing to pay off student loans fast but it’s another when you’re essentially paying for a loan that’s not yours.
Getty Images
4 / 10
Your partner’s debt will affect your going back to school
Say at some stage during your marriage you decide to go back to school and you apply for a student loan. Because you’re married, you have to report your partner’s income. If your partner has a lot of unpaid student debt, this can make you ineligible for a loan.
SEE ALSO: 20 money myths we're busting for 2020.
Getty Images
5 / 10
Joint credit cards can have a higher interest rate
It may make sense to open a joint credit card account for household expenses, for instance. However, if your partner has bad credit, this may mean that your card will come with a higher interest rate. If your partner overspends on the card, this will affect your credit rating too. One of the best ways to protect your finances from divorce is to avoid joint accounts.
Getty Images
6 / 10
Be careful about making your spouse an added cardholder
Many of the best credit cards in Canada have the option of adding another cardholder to the account. If you add your partner as a cardholder on your account, you will be liable for any debt they accrue with that card.
Getty Images
7 / 10
Be careful about being the added cardholder
It’s just as risky to become the added cardholder on your partner’s account. If they haven’t been managing that account responsibly, this may negatively affect your credit rating because that account will be added to your credit report.
YOU MIGHT ALSO LIKE: how the zodiac signs spend their money.
Getty Images
8 / 10
Simply living together may not be the solution
You love each other but getting married will ruin your credit rating, so it’s better to just live together and save on the cost of a wedding too, right? Not so fast. The federal government will consider you common law partners if you’ve been living together for a year or more and legally you will be treated as spouses, with both the good and the bad that entails.
Getty Images
9 / 10
Your partner’s debt may affect you after their death
When your partner dies, their debt won’t become your responsibility unless you co-signed on the loan, so you won’t necessarily have to resort to crime to survive. However, your partner’s creditors will demand repayment through the estate and that includes any assets you jointly own, such as the house.
YOU MIGHT ALSO LIKE: why women need to save more than men for retirement.
Getty Images
10 / 10
Have “The Talk” before marriage
Deciding on whether or not to have children isn’t the only big talk you need to have before getting hitched. You also need to talk about how you will handle finances and debt and your financial goals, like retiring young. If a more financially responsible partner has to carry the debts of the more irresponsible partner, this can lead to resentment.
ADVERTIsem*nT
ADVERTIsem*nT
ADVERTIsem*nT
- Love
- Money
Written ByDoug Murray
Watch Now:
Original Series
Latest News
contest
Vanderpump Rules Screening Giveaway Rules
Enter for a chance to win tickets to the Vanderpump Rules Screening giveaway.
Slice Staff
January 12, 2024
Health
The Ultimate Guide to Hosting a Self-Care Sunday
Because you deserve a day dedicated to your well-being.
Amber Dowling
September 25, 2023
worth the hype
We Tried Rhode Skin — Here’s What We Really Think
We put Hailey Bieber's Rhode skincare products to the test.
Slice Staff
May 3, 2023
Travel
The 10 Best Places to Travel in May
If you needed an excuse to travel abroad this May 2023, here are 10.
Lydia Hrycko
April 21, 2023
RHOM
‘The Real Housewives of Miami’ Ranked by Net Worth
Luxury cars, penthouse suites, lavish mansions — here's how they can afford it all.
Amber Dowling
April 20, 2023
Ambition
The Pros and Cons of AI Writing Your Resume
Should you use AI to write your resume? We break it down.
Sabina Wex
April 20, 2023
Living
10 Pink Houseplants to Add a Pop of Colour to Your Apartment
Your apartment is about to look pretty in pink.
Chelsea Brimstin
April 19, 2023
Self
What is an Ambivert? An Expert Reveals Signs That You are One
We break down the signs for those in a "personality limbo."
Susy Alexandre
April 18, 2023
The Richest
20 Richest Singers of 2023, Ranked by Net Worth
Not only are they topping the charts, but they're also the world's wealthiest.
Doug Murray
April 18, 2023
ADVERTIsem*nT