DIVISION OF PROPERTY / ASSETS & DEBTS

Debt is part of the American life style.  We buy homes and carry a mortgage, we buy autos and carry a lease or a loan and we each have various credit card debts for incidentals, emergencies and/or a trip or family splurge.  Often in a divorce matter the parties can easily divide the assets, be it the family residence, cars, jewelry, a vacation home etc.  Parties in a divorce action often forget about dividing the community debt that has accumulated through out the marriage.  In a divorce situation the parties will no longer have two incomes with which to pay all the bills. In this economy it may be difficult to pay for daily household expenses with just one income.  If neither party will be able to pay for the debt it may be wise to consult with a bankruptcy attorney.

California is a community property state and the California Family code calls for an equal distribution of the parties’ assets and debts.  The parties can enter into an agreement as to who will be responsible to pay what debt.  In the event that the spouse who is awarded the debt obligation does not pay you can pay the debt yourself to save your credit and/or proceed to court to enforce the original order stating that your spouse has not complied with the courts order.  This of course does not save your credit or prevent creditors from contacting you demanding payment.

If you have assets like a home it may be wise to sell the home and each pay the debt from the proceeds of the assets so that each of the parties can walk away debt free.

For further assistance on your particular matter feel free to contact the law firm of Yanez & Montes, LLP 714-665-6600.

 

Source: BETTINA YANEZ FAMILY LAWYER

Published by: on February 24th, 2009 | Filed under Law



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