How is Debt Split in California?

Under San Jose family law, debt is divided in the same manner as property. The same classifications of communal and separate property apply to debt, and the same rules apply in determining how the debt is split. Unfortunately, you may be held responsible for debt incurred by your spouse without your knowledge. San Jose divorce lawyer Madan Ahluwalia can help you with debt and San Jose property division issues.

7-post-divorce-money-mistakesCommunity Debt

Community debt is normally divided equally between both spouses. Debts sometimes come as a shock to one or both spouses. Community debt is debt that one or both of you acquired during the marriage or domestic partnership. It does not matter if your spouse acquired the debt without your knowledge or if the debt was only in your spouse’s name and not yours.

Separate Debt

Separate debt is debt that was acquired by your or your spouse before you married or entered your domestic partnership and after the date of separation. Separate debt belongs to the spouse who incurred it, and is not divided between the two of you.

It is not unusual for one spouse to run up a huge amount of debt when the marriage is failing or if they know they are getting divorced. There are many reasons why this happens including grief, anxiety, and anger. If your spouse did this before the date of separation, you can be held responsible. Determining the date of separation is not always straightforward and spouses may strongly disagree. Divorce attorney Madan Ahluwalia can help you avoid having to pay debts that you should not be held responsible for.

To learn more about divorce, in California, please call San Jose family law attorney Madan Ahluwalia of Ahluwalia Law P.C. (408) 416-3149 or contact us online today.