In most states, in a divorce, both parties will likely be responsible for credit card debt on a card held jointly. This applies even if one spouse was the one who used it the most, or made the payments. ... In community property states, each party is responsible for 50% of the debt from a joint credit card account.
In California, each spouse or partner owns one-half of the community property. And, each spouse or partner is responsible for one-half of the debt. Community property and community debts are usually divided equally. You may have more community property than you realize.
The law considers debts incurred after the marriage date and before the couple separate to be "community" debt. Even if only one spouse incurred the obligation, it's still a 50-50 joint responsibility. Debts that arose prior to marriage and after separation are normally characterized as "separate" debt.
Matrimonial debt on divorce
Regardless of whether the debt was taken out in the name of one spouse, or as a joint debt, if the debt was incurred for the benefit of the family (i.e. both spouses have enjoyed the benefits of the loan), then it is likely that both parties will be jointly responsible for the debt.
Under California law, “all separate debts, including those debts incurred by a spouse during marriage and before the date of separation that were not incurred for the benefit of the community, shall be confirmed without offset to the spouse who incurred them.” Ca Fam.
With any joint debts you have – for example, a joint bank loan, overdraft or mortgage – you're usually both liable to repay the whole amount. That means if your ex-partner doesn't pay their share, the bank or building society might ask you to make all the payments.
In most states, in a divorce, both parties will likely be responsible for credit card debt on a card held jointly. This applies even if one spouse was the one who used it the most, or made the payments. A judge, however, may decide that one spouse is able to pay more than the other.
Generally, one is only liable for their spouse's debts if the obligation is in both names. ... But, unless both the husband and the wife are on the credit card account (even if only as a co-signer), one spouse will not be held liable for the obligation of the other on that account.
If you have any joint debt with your spouse and you can afford to, we highly recommend paying off all marital debt, even before you draw up the divorce papers. ... If you have any cash or savings available, you're better off tapping into that and getting rid of the debt before the divorce is final.
Getting a divorce is never easy, and couples who are separating may experience stress while wondering how their assets will be split. ... You're entitled to half of everything in your divorce, but it's up to you and your spouse to work together on listing out what you want to divide.
Your spouse is not entitled to half of the house simply because he or she made payments on the mortgage principle. Your spouse is entitled to a reimbursement for half of the principle pay down during the marriage (i.e. date of marriage to date of separation).
In equitable distribution states, premarital property, gifts and inheritances are usually excluded from division. The central component that makes community property states different from equitable distribution states is how the court treats marital assets.
You are generally not responsible for your spouse's credit card debt unless you are a co-signor for the card or it is a joint account. However, state laws vary and divorce or the death of your spouse could also impact your liability for this debt.
Because California law views both spouses as one party rather than two, marital assets and debts are split 50/50 between the couple, unless they can agree on another arrangement.
Keep separate bank accounts, take out car and other loans in one name only and title property to one person or the other. Doing so limits your vulnerability to your spouse's creditors, who can only take items that belong solely to her or her share in jointly owned property.
Do You Inherit Debt When You Get Married? No. Even in community property states, debts incurred before the marriage remain the sole responsibility of the individual. ... If you signed up for a joint credit card before getting married, then both spouses would be responsible for that debt.
Common-law rules assign joint spousal responsibility for debts that benefit the couple and their family equally, such as food and clothing or rent on a shared apartment. They also distinguish between debts applied for individually, by one spouse or the other, and debts applied for jointly, by both spouses together.
If an abusive partner (to whom you are not married) failed to re-pay money that you lent to him/her or failed to make credit card or loan payments that s/he agreed to, you may be able to take the abuser to small claims court to sue for that money.
Under California's community property laws, assets and debts spouses acquire during marriage belong equally to both of them, and they must divide them equally in a divorce.
You can only compel your spouse to leave if the home is considered separate property or if you can prove abuse or domestic violence occurred and can obtain a restraining order. If your spouse will not leave and you are uncomfortable continuing to live in the house, then you can choose to leave the home.
A big reason to keep the house is to provide stability for your children. They are always the innocent victims of a divorce, unable to control their destinies until they are older, but still intimately impacted by you and your spouse's failures as husband and wife.
Real estate owned prior to marriage remains separate property. ... If your name is not on your home's title for these reasons, you would not own the home; neither would you be held responsible for loan repayment or any other lien placed on the property, even if it resulted in foreclosure.