unauothorized use

What is the name of your state? Texas

Despite a prenuptial agreement that was supposed to keep our property and credit cards separate, and despite that I am the only authorized account holder, my wife used my cards (without my knowledge or consent) to run up $8,000 of charges and cash advances, all that after running up over $160,000 on her own cards within one year period.
1. Isn't that fraud plain and simple?
2. Don't the banks and merchants have obligations to verify identity of the person using the card? Aren't they negligent and liable?

[HomeGuru]

[quote=MarcoPolo]What is the name of your state? Texas

Despite a prenuptial agreement that was supposed to keep our property and credit cards separate, and despite that I am the only authorized account holder, my wife used my cards (without my knowledge or consent) to run up $8,000 of charges and cash advances, all that after running up over $160,000 on her own cards within one year period.
1. Isn't that fraud plain and simple?

**A: no, not in all circumstances.
*******
2. Don't the banks and merchants have obligations to verify identity of the person using the card? Aren't they negligent and liable?

**A: were these online or over the telephone transactions rather than in-person?
How did she get the cards? There is a lot more to this story that what you are telling.

1. Isn't that fraud plain and simple?

**A: no, not in all circumstances.
such as?


2. Don't the banks and merchants have obligations to verify identity of the person using the card? Aren't they negligent and liable?

**A: were these online or over the telephone transactions rather than in-person?
How did she get the cards? There is a lot more to this story that what you are telling.

the cards were in my desk. Most (if not all) transactions were in person
(all cash advances had to be in person).
BTW, indeed there is a lot more to the story, such as she used her cash advances for a $10K down payment on a rental property and for a $20K "investment" with a FOREX broker (read scam). But, hey, easy come easy go.

[Ladynred]

TX is a community property state. Does a prenup in TX trump or modify the community property laws ?? I suggest you find out. Creditors know its a CP state and they know nothing of the prenup - which doesn't bind THEM in any way. As far as they are concerned, you're just as liable for the debt as she is.

(Thank God there are only 11 CP states - and I will never be married and live in one - ever !!!!)

Originally Posted by Ladynred

TX is a community property state. Does a prenup in TX trump or modify the community property laws ?? I suggest you find out. Creditors know its a CP state and they know nothing of the prenup - which doesn't bind THEM in any way. As far as they are concerned, you're just as liable for the debt as she is.

(Thank God there are only 11 CP states - and I will never be married and live in one - ever !!!!)

There is a difference between the other spouse being liable and the community property being fair game to creditors. I disagree that the non-debtor spouse in a CP state is "just as liable for the debt" as the debtor spouse.

[Ladynred]

While there may be some legal situations where the non-debtor spouse isn't liable, but for the most part, community property means you share and share alike on everything during the marriage, assets AND debts. There are ways to maintain separate property and those methods may also apply to debts, but its not easy and most people have no clue. Where debt is concerned, community property is a nasty trap.