One of the functions of marriage in Japan is to create an economic union between the couple. This is expressed in the way couples’ property acquired after marriage is considered jointly owned and in the way spouses owe a duty to economically support one another.
This economic union also means that married couples in Japan are responsible for sharing expenses related to their marriage. Specifically, if one spouse signs a contract with a third party regarding everyday household matters (such as a cleaning service or a grocery bill) then the other spouse will also be a responsible party under this contract unless it is made clear beforehand that only one spouse will be responsible for the debt.
However, this sharing of costs for household necessities and daily expenses does not extend to liability incurred in other areas not related to the marriage. For example, barring some special circumstance, a wife will not be held liable for her husband’s loan to pay off his gambling debts. If this loan was taken out solely by the husband to pay off his personal debt to a casino or pachinko parlor, this money cannot be considered a household expense.
In general, the same rule holds true for children or parents. A child or grandparent will generally not be held liable for the personal debts of a relative.
However, relatives can be held jointly and severally liable if they sign as a guarantor of the debt in the same way any other guarantor would. Therefore, in the above example, if the wife cosigned the husband’s bank loan, she would be responsible for repaying the money even if her husband ended up using the loan to pay off his gambling debts. Therefore, it is always very important to thoroughly understand any contract and how it will affect your rights and responsibilities before signing.
Some spouses may worry that their partner may fraudulently sign their name (or stamp their inkan) on a loan agreement as guarantor without their permission. However, if the spouse can prove that the signature or stamp was made without permission, he or she will not be jointly responsible for the debt. Therefore, it is important to consult with an attorney if you are being held responsible for a contract that you did not actually sign.