Wisconsin’s Marital Property Law

Termination of Credit Plan by Spouse

Under the Act, a non-applicant spouse may terminate the open-end credit plan established by the other spouse. Termination is made by giving written notice of the termination to the creditor. Notice of termination does not affect the liability of the incurring spouse or the availability of either spouse’s interest in property to satisfy obligations incurred under the plan, both before and after notice of termination. The terminating spouse’s interest in marital property continues to be available both before and after termination subject to   Sec. 422.4155, Wis. Stats  (PDF: external link). The availability of the terminating spouse’s interest in marital property is limited to future obligations incurred within 15 business days after the creditor’s receipt of the termination notice. Total liability is limited to the greater of the credit limit or the balance outstanding on the date of receipt of the termination notice plus $500.

Open-end credit plans may include contract terms permitting the creditor to accelerate payment of an account balance upon notice of termination. The default provisions of   Sec. 425.103  (PDF: external link) and notice of right to cure default at   Sec. 425.105, Wis. Stats  (PDF: external link) do not apply (   Sec. 766.565(5)  (PDF: external link)).

Should the applicant spouse reapply following termination, the creditor may consider in its evaluation of a subsequent application the fact that the non-applicant had previously terminated an account under this provision.