When a couple decides to divorce, they divide more than assets. They must also divide debt that has been incurred during the marriage. California is considered a “community property” state. This means assets acquired and debts incurred by either spouse during the marriage belong to each spouse equally. Unless there is a prenuptial agreement that outlines a division of property and debts, it is likely that the court will order that the “community” property and debts be divided equally between the two spouses.
This does not mean that everything will be cut right down the middle. Instead, an equal division must be reached. This could involve one spouse keeping a large and valuable asset, like the house, while another gains other equally valuable assets. In some cases, the community debts outweigh the community assets. The court could rule that the spouse who is in the better financial situation should pay a larger share of these debts.
Types of Debt
There are two main types of debt that are considered during a divorce:
- Community Debt – This type of debt is incurred after the date of marriage and before the date of separation. Even if only one spouse racked up the debt, both spouses are responsible.
- Separate Debt – Debts that were incurred before the marriage or after the separation are considered separate. The date of separation is extremely important to note because debts that are incurred after the souses separate are considered separate. This means that you are not responsible for your spouse’s debt outside the marriage.
Men’s Legal Can Help You With Debt Division
In a divorce, both marital assets and debts must be divided. Generally, debts will be split as evenly as possible while considering the financial positions of each spouse after the divorce. To ensure there is a fair split, it is important to hire an experienced divorce attorney.
If you are facing divorce and asset and debt division, it is important to protect yourself and your future by hiring an experienced attorney at Men’s Legal Center. Our team of lawyers understand the hardships of divorce. We can help guide you through the process and ensure that you are fairly represented. Contact the San Diego asset and debt division lawyers at the Men’s Legal Center today for an initial consultation. We examine your case and offer advice for the most favorable outcome.