There are separate debts and community debts. As with assets, community debts are divided and distributed between the spouses in a dissolution of marriage proceeding. Generally, if a debt was incurred prior to the marriage, it remains a separate debt and isn’t a shared obligation. That is also the case with debts incurred by one spouse after the divorce action is initiated, although there are exceptions. For the most part, any debts that arose during the marriage will be allocated as community debts and, therefore, will be divided equitably between the parties in the divorce.
Related posts:
- 25-215. Liability of Community Property; Separate Property A. The separate property of a spouse shall not be liable for the separate debts or obligations of the other spouse, absent agreement of the property owner to the contrary....
- What is Community Property? All property acquired by either spouse during the marriage is community property — the marital property shared equally by husband and wife. The exceptions are: property acquired by gift, devise,...
- What is equitable distribution of community property? In a divorce, there is an equal and equitable distribution of the marital property. Community property is divided equally between the spouses — they each have an undivided one-half interest....
- 25-211. Property Acquired During Marriage – Community Property A. All property acquired by either husband or wife during the marriage is the community property of the husband and wife except for property that is: 1. Acquired by gift,...
