In California, You Are Responsible For Your Spouse’s Debt
During a marriage, you and your spouse build a life together, but you probably also collect debt along the way, including a mortgage, car loans, and the everyday credit card debt. When that marriage ends, you’ll need to determine how to equitably divide your assets as well as your debt.
California is known as a “community property state,” which means that couples equally own all assets and all debts acquired during the marriage and must split those assets and debts down the middle during a divorce. For example, if your spouse went through a mid-life crisis, decided to splurge on a new Ferrari 488 Spider, and took out a car loan for $270,000, you will be responsible for half of that loan when you get divorced. The same goes for home loans, credit card debt, and any other debt acquired during your marriage.
On the up side, you’ll also own half of your spouse’s 488 Spider. You may be able to negotiate a deal where your spouse buys out your portion of the car in exchange for paying all or some of the loan debt.
One important caveat is that you only share debt that was acquired during your marriage. If your spouse took out $100,000 in student loans before you were married, then you won’t be saddled with it after divorce!
If you live in Temecula & Murrieta and are considering a divorce, let us help you negotiate the best settlement possible. Call us today for a free consultation.