One of the most common financial questions in California divorce is whether each spouse is responsible for the other's debts. "Am I responsible for my husband's debts if we divorce?" and "am I responsible for my spouse's debt in California?" reflect understandable concern about credit card balances and loans accumulated during the marriage.
Community Debt in California
California treats debts incurred during marriage as community property. Am I responsible for my spouse's debt in California? Generally yes, if the debt was incurred during the marriage for community purposes. Both spouses are equally liable for community debts regardless of whose name is on the account. Am I responsible for my husband's debts if we divorce applies equally in reverse — both spouses share liability for debts incurred by either during the marriage.
What Counts as Community Debt
Community debts include: credit card debt incurred during the marriage (even on individual accounts), mortgages on community property, car loans for vehicles purchased during the marriage, medical bills incurred during the marriage, and personal loans for community purposes. Debts incurred before the marriage are separate property debts. Debts incurred after the date of separation are generally the separate debt of the spouse who incurred them.
How the Divorce Decree Affects Creditors
A divorce judgment assigning a joint debt to one spouse protects the other spouse as between the parties — but does not bind creditors. If the assigned spouse fails to pay a joint credit card, the issuer can still pursue the other spouse. The proper protection is refinancing joint debts into individual accounts, or securing an indemnification provision in the marital settlement agreement.
Furubotten Law, APC advises clients on debt allocation in California divorce throughout Orange County and Riverside County. Call (714) 795-3862 for a complimentary case evaluation.