Monday, February 21, 2011

WHO HAS TO PAY DEBTS AND OBLIGATIONS IN A DIVORCE?

The following is a question which the inquirer agreed may be publicly revealed, and my answer to the question:

QUESTION: What liabilities are involved with divorce? Is there any financial or legal liability for the person who decides that they want to file for divorce? It seems to me that if one party walks away from their side of the obligations, ie car payments, house payments, etc that there should be some liability and they should be responsible for what they owe. Legally, is the person who initiates the divorce responsible for upholding their end of financial obligations that were made when the couple was together?

ANSWER: Both parties are equally responsible for community debts.

No additional liability attaches to the party who initiates the divorce.

The Court ordinarily divides the net assets 50/50, i.e., the value of the community assets less the amount of the community obligations.

If one party is financially unable to pay his/her share of the obligations, the party better able to pay may be awarded a larger portion of the community assets to counterbalance the larger portion of the community debts that party would be ordered to pay.

If the net value of the community assets less obligations is a negative figure, the Court does have the discretion to divide the community debts unequally, i.e., to order the party with the better ability to pay the debts, but that party is generally awarded all or at least a substantial amount of the community property, if any exists.

If a party is ordered to pay community debts and fails to do so, the creditors can sue the other party for those debts and collect those obligations from the party sued. That party can sue the ordered party for repayment, but if the ordered party declares (and is granted) bankruptcy, the liability of the bankrupting party to the other can be discharged.

This blog is brought to you by Certified Family Law Specialist DONALD F. CONVISER, a Los Angeles Family Law Attorney.

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