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Will your sweetheart’s bankruptcy disrupt your wedded bliss?

You would like to go into your marriage feeling supremely happy and confident about your future. However, your soon-to-be husband is going through bankruptcy, which casts a bit of a damper on your expectations for wedded bliss.

You are afraid that the bankruptcy issues could adversely affect your excellent credit rating. Fortunately, there are ways to prevent that from happening.

The main concern

Marriage does not mean that the credit scores of bride and groom become linked. You can keep your finances separate to a large degree, but if you and your soon-to-be husband share credit, you could see a problem. An example of this is cosigning on a car loan. Let us say that your husband takes care of the monthly payment. If, at some point, he should default on the loan, the lender can come after you. The remedy for this kind of situation is simple: keep your car loan, your retirement accounts, your credit cards and your checking and savings accounts separate. Your sweetheart is going through bankruptcy; he will understand.

The mortgage issue

You plan to buy a home after you are married. This is another common cosigning situation, but it requires a decision. You will probably be able to qualify for a larger loan if the two of you apply for a mortgage together because the lender will take both your incomes into consideration. However, because your soon-to-be husband has a bad credit rating, it might be better for you to apply on your own. You will likely get a better interest rate.

Future protection

An attorney will tell you that your sweetheart’s bankruptcy should not disrupt your marriage plans as long as you take a few common-sense steps. First, make sure your intended shares all the bankruptcy information with you so you will not be blindsided by anything down the road. Second, protect yourself by keeping your financial life separate from his. Third, consider the financial boundaries for your marriage separately and together going forward. Honesty, good planning and shared goals will help you have the happy future you deserve.

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