The division of assets and debts in a California divorce depends on their character. Giving assets and debts a “character” sounds quite odd. But how assets and debts are labeled ultimately determines who gets to keep what, and who is responsible for what.
Under California Family Code section 910 the community (meaning both spouses) is liable for all debts incurred during the marriage and prior to separation. It does not matter whether the debt was incurred by one spouse for his or her own benefit or for the family. It also doesn’t matter whose name appears on the bill or the credit card statements. If the debt was incurred during the marriage and before separation, it is a community debt and both spouses are equally liable. Debt incurred after separation may be either community or separate debt, depending on the circumstances. Continue Reading