In a California divorce, property division is often contentious. The state follows a community property model in property division, meaning that almost everything acquired by either spouse during the marriage is owned jointly with the other spouse. However, property division is rarely a matter of simply dividing everything 50/50.
One complicating factor that people often forget about is debt. The law covers debts and liabilities just as it does assets. This can be an even more difficult area to navigate as neither side wants to be responsible for debts they believe the other person accrued.
Community property laws extend to debts and liabilities
Just as most items acquired during the marriage are subject to community property laws and split in half, the same is true for debts and liabilities. If the couple bought a home while they were married, then the property will need to be shared when they divorce. When there is a mortgage remaining on the home, they must also to split that debt. The same is true for items in the home such as furniture that is still being paid for. Credit cards can be a topic of dispute. Credit card debt must also be shared.
Generally, debt that one or the other incurred before the marriage is not the responsibility of anyone but that spouse.
Still, there are times when debt could be categorized differently. If the community debts go beyond the community and quasi-community assets, anything in excess is left to the discretion of the court. In these circumstances, the court tries to come to a solution it considers fair.
In some instances, the couple separated before moving forward with the divorce. If the debt was for the basics such as food, clothing, rent, and medical expenses for themselves or children from the marriage, the debt must be confirmed to whichever spouse has the need and the ability to pay. Non-necessities are confirmed to the person who made the purchase.
Dividing debt can be a problem
Finances play a fundamental role in a family law case. While most think of their property and how it will be divided, they should also be aware of debt. Even in situations where the parties are on reasonably good terms, this can be a source of dispute. For this or any other area of divorce, it is essential to be prepared and know how to reach an acceptable resolution.