Debt and Divorce in California
During a divorce, property and assets must be divided amongst the partners. These assets include all debts incurred during the marriage. Debt can be a huge source of contention during the divorce process in Orange County, CA. Couples with high debts and high assets may travel a rocky road without proper assistance.
California is a community property state — this means all marital property is divided equally between the spouses. All debts are considered the equal responsibility of both spouses, even if certain debts are in one spouses’ name only. Even debt that was incurred by one spouse is considered a shared obligation. For example, one spouse uses a credit card in his or her name to buy clothing for him or herself. In all cases, each spouse is responsible for 50% of the debt. If one spouse uses separate, pre-marital assets to pay off the other party’s debt, the spouse may be entitled to reimbursement upon dissolution.
Applicable debt may include:
- Credit cards
- Medical bills
- Student loans
- Home loans
- Car loans
- Private loans
- Tax obligations
You may consider selling any real property jointly owned to pay some of the debt down. To deal with credit card debt, you might open a credit card in your name only and transfer the balance of a joint credit card onto the new card. Some people simply split the debt down the middle and deal with repayment separately. Each case is different. Consult with your Irvine divorce attorneys to learn which approach is appropriate for your situation.
Michel & Rhyne is a family law firm located in Irvine, CA. We help protect your assets and property during the complicated and stressful divorce process.
Dave Weilder
Dear Orange County Divorce Lawyer,
I recently read your blog post titled “Debt and Divorce in California,” and I wanted to express my appreciation for addressing this important topic. The intersection of debt and divorce can be a complex and challenging issue, and your article provides valuable insights and guidance for individuals navigating this situation in California.
The financial implications of divorce can be significant, and understanding the impact of debt is crucial for couples going through the divorce process. Your blog post offers clarity on various aspects, such as the classification of debt as community or separate property, the division of debt during divorce proceedings, and the potential long-term effects on credit and financial stability.
I appreciate the way you break down the different types of debt that couples may encounter during divorce, including mortgages, credit card debt, student loans, and more. By explaining how California law treats these different forms of debt, you provide readers with a better understanding of their rights and obligations when it comes to debt division.
Furthermore, your article highlights the importance of seeking professional advice from a knowledgeable divorce attorney. Navigating debt and divorce requires expertise in family law and a deep understanding of California’s legal framework. By engaging the services of an experienced attorney, individuals can protect their interests and work towards a fair and equitable resolution.
Your blog post serves as a valuable resource for individuals in Orange County who are facing the complexities of debt and divorce. The comprehensive information you provide empowers readers to make informed decisions and take appropriate steps to manage their financial situation during this challenging time.
I want to express my gratitude to the Orange County Divorce Lawyer team for sharing this informative article. Your dedication to providing valuable insights and guidance to individuals going through divorce is commendable. By addressing the nuanced aspects of debt division, you contribute to the overall well-being and financial stability of your clients.
I encourage readers to explore your blog further and consider seeking professional assistance to navigate the complexities of debt and divorce. Your expertise and guidance can help individuals protect their financial interests and lay the foundation for a stable future.
Thank you once again for your informative blog post and your commitment to supporting individuals facing the challenges of debt and divorce in California.