Money impacts nearly every aspect of marriage. Credit is a significant part of your total financial picture, and failing to handle it wisely can impact your future. Learning about some common credit-related mistakes can help you avoid them and build a solid financial foundation together.

Failing To Disclose Your Credit History

Trust is a vital part of any relationship, but that’s even more critical in a marriage. Going into it eyes wide open involves honesty on both sides, including your past credit usage and the amount of debt you each carry. You don’t have to remember every minute detail on your credit report. However, you should have a good idea of what your history and rating look like before you first broach the subject with your partner.

Conversations about finances take should place once your relationship has become serious. Ideally, this should be well before either of you pops the question. MarketWatch’s Nicole Lyn Pesce adds that couples should discuss their credit histories before moving in together. That includes credit scores, overall debt, and any major negative items such as previous bankruptcies.

Assuming Your Spouse’s Debts Won’t Affect You

For married couples, credit matters can become somewhat complex. Spouses aren’t legally required to pay each other’s pre-marriage debts. At the same time, you can’t simply ignore them. If one spouse has less-than-stellar credit or a lot of debt, this can affect your ability to make major purchases, contribute to your savings, or even pay your monthly bills. Student loans make up the bulk of pre-marriage debt, but it can also include credit card balances and auto loans. Understanding this is key in creating a financial strategy that works best for both of you.

Not Creating a Financial Plan

Savvy couples understand that they need a household budget, but creating a financial plan doesn’t stop there. You should review each other’s credit reports, looking at existing debts and negative items, and discussing how they could impact your finances. Your goal is understanding the bigger picture, not judging either partner for past mistakes.

Your next conversation should cover your general financial goals and how paying off debt factors into reaching them. Ultimately, you must decide whether debt repayment should be incorporated into the household budget or handled individually by each partner. Regardless of who ultimately pays these debts, it’s important to have a repayment strategy. The Balance’s Latoya Irby discusses several options, including consolidation, settlement, and bankruptcy.

Not Understanding Marriage Property and Debt Laws

If your spouse buys a vehicle and you don’t cosign on the loan, can creditors hold you responsible for payment? It depends. Investopedia explains how state laws handle the property and debts of individual spouses during marriage. In common law property states, those assets and liabilities belong only to the spouse who acquired them. Community property states treat them as belonging to both spouses, regardless of who obtained assets or initiated debts. Currently, nine states follow the community property system: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.

Even in common law states, debt in one spouse’s name may become the responsibility of both if it’s related to marital expenses. Huffington Post’s Casey Bond mentions examples such as rent payments, food, household bills, and childcare costs.

Work Your Plan and Stay the Course

It’s important to keep each other updated after you reach some of your financial goals. This underscores an important point: finances are an ongoing conversation. Your efforts don’t stop after you’ve paid off debt, purchased a house, or established a savings plan. Avoid these common credit mistakes and what you create together will grow and change along with your relationship.