How Is Debt Divided in a Divorce in California?
Deciding to go your separate ways wasn’t an easy decision for you and your spouse to make. If you’ve already made the decision to get a divorce, one of the toughest aspects of separating a life is the division of property and debt. How is debt divided in a divorce in California?
The most important thing is that each party comes away with the most equitable division possible. Equal division doesn’t mean that everything is split down the middle. It simply means that the net value of assets, property, and debt is even after everything has been divided and all factors have been thoroughly considered.
Factors to Consider When Dividing Marital Debt
Many couples are able to reach an agreement on the division of their marital debt; but remember, even if you come to an agreement without the involvement of a judge, the court must still sign off on it.
If you aren’t able to decide and agree on a fair division between you and your spouse, the court will be forced to help you. The court will consider many factors when dividing marital debt after a divorce, and so should you.
Here are some examples of what to consider when dividing debt between you and your spouse:
- What property is community property and what is separate property?
- Did one spouse use separate property to pay off the other spouse’s debts?
- Property and assets can be used to offset debt. For example, if one spouse is getting the house (an asset), to make things even, that party could accept ownership of much of the credit card debt.
- When one party keeps a vehicle that’s paid off, that party may consider taking over payments on a credit card.
- Will one spouse be making spousal support payments?
Help with Dividing Assets and Debt in California
Coming to a fair agreement regarding property, assets, and debt during a divorce can be an overwhelming process. That’s why many people in your situation hire legal help.
The divorce attorneys at the Law Office of Laurence J. Brock have experience helping couples reach agreements through mediation or representation in court. To speak with an attorney in a free initial consultation, give us a call at 909-466-7661 or complete the form below.