Typical California Divorce Settlements about Debt
When attempting to come to a California divorce settlement, many issues must be resolved. One of the most heavily debated issues for California couples calling it quits is how to divide debt.
What are Typical Divorce Settlements About Debts in California?
In many cases, issues regarding the division of debt are easy to resolve. The typical divorce settlements either divide community debt by assigning it to one spouse as an offset for receiving a more significant asset, cause the debt to be paid through the settlement before the final divorce decree, or divide the debt 50/50. In cases where the debt is divided equally or assigned to an ex, the other party in the case should consider security measures to protect themselves from the negative repercussions of their spouse failing to pay the debt once the divorce is final.
Debt division during California divorce can be a complicated area of law, but there are some primary goals.
1. Determining the type of character of the debt (joint or separate)
2. Whether either spouse is entitled to reimbursement
3. How to make a fair division
An Overview of the California Division of Assets and Debt:
As a community property state, California divorce courts generally consider assets acquired during marriage and debts incurred during the marriage to be jointly held. Unless the spouses involved entered into their own agreement regarding the division of property and liabilities (such as a prenuptial agreement), a court order would require community property and debts divided 50/50 with the goal being an equal division. The fair division rule will be set aside in cases that involve community debt that outweighs the value of the marital property. In these circumstances, California courts are allowed to order an unequal division by assigning excess debts to the spouse who is in a more stable financial situation.
If you need more information about the division of debts and assets in a California divorce, you can get in touch with the experienced divorce attorneys at The Maggio Law Firm. We are your advocates in the California legal system.
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