I've been doing some research and learned that a couple can sign a prenuptial agreement so that one person's debt doesn't affect the other person's credit. Is this true? Is this applicable in Oregon? How much would such an agreement cost to draw up and sign? Would we need a lawyer to do this for us or help us? If so, how much would that cost? Any and all help would be greatly appreciated!!

This is a slippery slope because once married you will be associated with them while the marriage lasts. Another thing is that the debt if active can be collected on and it will effect the overall finances of the marriage. Im not sure it can be done to isolate yourself completely from an obligation other then it would be their obligation. Its just the offshoot of it will leave a mark in what you both shall have.

Im going to be honest, I don't understand what you're saying.

That is OK. Let me try it this way.

Lets say your partner owes $25,000. And you want to marry. The $25,000 is owed to a bank or credit card. No suit has been filed for collection. Its just in the collections stage. So you marry. The debt is ignored until your partner is taken to court and a judgement is placed upon them. In reality it is their debt anyway. In truth it will effect both of you as a couple. The debt will still burden the marriage no matter who's name is on it.

It will until paid off reduce your purchasing capacity as a couple. It may disqualify you "both" from getting a join loan (like for a home). If the debt is high enough and they can't repay it then they should consider some type of bankruptcy if it is an available option. Before the marriage takes place. Then you can start on a fresh footing.

Even with a prenup should they pass away first in later years, the debt will still have to be dealt with. There is no way around it.

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Originally Posted by ChihuahuaMomma

I've been doing some research and learned that a couple can sign a prenuptial agreement so that one person's debt doesn't affect the other person's credit. Is this true? Is this applicable in Oregon? How much would such an agreement cost to draw up and sign? Would we need a lawyer to do this for us or help us? If so, how much would that cost? Any and all help would be greatly appreciated!!!

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No, not true - a prenup would not cover this specific concern. Those ads in the newspaper that state Y is not responsible for the debts of her husband, Z, are meaningless - joint accounts and joint property CAN (and will) be seized if the matter goes to Judgment.

You also cannot control what the credit reporting companies report, but HIS debts do not get listed on your report. If they do through some error, you can get that corrected. However, you will not be able to get any JOINT loans, mortgages, lines of credit if HIS credit is bad.

Unless you have totally separate bank accounts, totally separate assets, you could very well end up being responsible for his debts because what is joint belongs 100% to either one of you. I know it doesn't make sense unless you're very familiar with it but if you have a joint account it can all be seized for his debt or all seized for you debt. There is no magic dividing line.

First off, were not talking about credit debts. They are small debts owed to companies. The total does not exceed $5k. The debts are mine, not his. I was told that a prenup can black my credit score from affecting his... I did not read this in a newspaper...

If there are no joint loans being applied for then your score wouldn't effect his. From what your stateing a prenup would cost you more then the interest on the outstanding loan/s. I know people want things to be perfect when starting but with what your saying I woulndnt really concern myself over it and just work on paying it off asap if it's a bother.

Ok. Thank you for the information