Many people wonder and worry about what will happen to their debt once they follow through with a divorce. California is known as a community property state, which means that anything that either spouse buys or any debt that is incurred is the responsibility of both spouses. The only way to bypass this is if both spouses agree on how to divide the property and debt. Otherwise, California courts will divide them as evenly as they can.
In certain cases where the total amount of debt accrued is more than the value of the property, the court would give the additional debts to the spouse who has more money or a higher-paying job.
Community debts differ from separate debs. Community debts refer to any debt which was accrued during the course of the marriage. Both spouses are responsible for these debts even if it was, for example, a credit card in one spouses name. Income tax also falls under the umbrella of community debt. Separate debt is any debt that from prior to the marriage or after separation. This debt belongs to each respective spouse.
In order to decide whether it is community or separate debt, the date of separation of the couple must be made clear. California courts determine this by both the physical parting of the couple and the intent of at least one spouse to end the marriage.
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Farbod Majd Esq.
Divorce Attorney w/ offices in Beverly Hills/Los Angeles
Services in English, Turkish, and Farsi/Persian (Iranian/American Lawyer)
8383 Wilshire Blvd Suite 646, Beverly Hills, CA 90211
310.956.4600 | Fax: 310.878.8989 | [email protected]