§ 916 Spousal Debt After Division

Key Takeaways

•If you get divorced, your own stuff and what you get from the split can be used to pay your own debts from before or during marriage.
•Your stuff and what you get from the split can't be used to pay your ex's debts unless you agreed to pay them during the split.
•If you agreed to pay your ex's debt during the split, your stuff can be used to pay it, but you can ask your ex to pay you back later.
•If a court orders your ex to pay a debt after the split, your stuff can't be taken to pay it unless you were part of that court decision.

Example

John and Jane get divorced. During the divorce, they split their stuff. John had a credit card debt of $5,000 from before they got married. Jane had a student loan of $10,000 from during their marriage.

John's stuff and what he got from the split can be used to pay his $5,000 credit card debt. Jane's stuff and what she got from the split can't be used to pay John's debt. But if Jane agreed to pay John's debt during the split, her stuff could be used to pay it, and she could ask John to pay her back later.

(a) Notwithstanding any other provision of this chapter, after division of community and quasi-community property pursuant to Division 7 (commencing with Section 2500): (1) The separate property owned by a married person at the time of the division and the property received by the person in the division is liable for a debt incurred by the person before or during marriage and the person is personally liable for the debt, whether or not the debt was assigned for payment by the person’s spouse in the division. (2) The separate property owned by a married person at the time of the division and the property received by the person in the division is not liable for a debt incurred by the person’s spouse before or during marriage, and the person is not personally liable for the debt, unless the debt was assigned for payment by the person in the division of the property. Nothing in this paragraph affects the liability of property for the satisfaction of a lien on the property. (3) The separate property owned by a married person at the time of the division and the property received by the person in the division is liable for a debt incurred by the person’s spouse before or during marriage, and the person is personally liable for the debt, if the debt was assigned for payment by the person in the division of the property. If a money judgment for the debt is entered after the division, the property is not subject to enforcement of the judgment and the judgment may not be enforced against the married person, unless the person is made a party to the judgment for the purpose of this paragraph. (b) If property of a married person is applied to the satisfaction of a money judgment pursuant to subdivision (a) for a debt incurred by the person that is assigned for payment by the person’s spouse, the person has a right of reimbursement from the person’s spouse to the extent of the property applied, with interest at the legal rate, and may recover reasonable attorney’s fees incurred in enforcing the right of reimbursement. (Enacted by Stats. 1992, Ch. 162, Sec. 10. Operative January 1, 1994.)

Key Takeaways

•If you get divorced, your own stuff and what you get from the split can be used to pay your own debts from before or during marriage.
•Your stuff and what you get from the split can't be used to pay your ex's debts unless you agreed to pay them during the split.
•If you agreed to pay your ex's debt during the split, your stuff can be used to pay it, but you can ask your ex to pay you back later.
•If a court orders your ex to pay a debt after the split, your stuff can't be taken to pay it unless you were part of that court decision.

Key Takeaways

Example

Key Terms

References

§ 916 Spousal Debt After Division

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References