If you are considering divorce or starting the process of getting divorced you likely have many questions. One of which, is how debts get divided in a divorce. Not sure what happens with debt during a divorce? Keep reading to learn more about debts and assets during a divorce and how Kendall Gkikas & Mitchell, LLP can help with the process!
California is a Community Property State
It is important to know that California is a community property state. That means that any assets acquired during the divorce are considered community property that would be split equally in a divorce. The same can be said for debt.
How to Manage Joint Debt
With California being a community property state, it means creditors can hold both spouses liable for any debt incurred throughout a marriage. Creditors do not care who pays their bills, only that they get paid by the parties responsible for the loan. This means that any debt incurred during the marriage is shared and both parties will be responsible. That is why it is crucial to assign community debt at the time of a divorce to avoid issues in the aftermath.
Debt Assignment in a California Divorce
Before debt gets assigned in a California divorce, there are things to consider. This includes things like:
- Whichever spouse receives the car should also receive the car’s loan payments
- If you do not have enough income to pay off debt together, assets should be sold to do so before the divorce is finalized
- If you are not certain your ex will pay off debt after the divorce, ensure that it is paid off before the divorce is finalized
As you can see, there are many scenarios to consider when it comes to debt and divorce. That is why it is a good idea to contact an experienced divorce lawyer to handle your case.
If you want help settling assets and debt in a divorce, contact Kendall Gkikas & Mitchell, LLP today!
If you are getting divorced, you might be focusing on the assets that need to be divided. However, you cannot forget about the debt that accrued during the marriage either. At Kendall Gkikas & Mitchell, LLP, we can help you reach a settlement agreement that fairly divides assets and debts between you and your ex-spouse. Contact us today at 909-482-1422 to schedule a consultation to discuss your case.
To learn more about the reliable and quality family law services that we offer, visit us on the web at Kendall Gkikas & Mitchell, LLP.
