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Division of Community Property

In California, just as assets belong to the spouses equally, so do the debts. California Family Code, Section 910 states the following:

  • (a) Except as otherwise expressly provided by statute, the community estate is liable for a debt incurred by either spouse before or during, regardless of which spouse has the management and control of the property and regardless of whether one or both spouses are parties to the debt or to a judgment for the debt.
  • (b) “During marriage” for purposes of this section does not include the period during which the spouses are living separate and apart before a judgment of dissolution of marriage or legal separation of the parties.

Schedule of Assets and Debts; Income and Expense Declaration

When a married couple decides to seek a dissolution, the process will take far less time and energy if the estate assets and debts are noted and organized. There are several forms that are used in this process:

While you will save time if you are organized, seek the professional advice of your family lawyer.

Community Debt Requires Attention to Detail

Although the spouses are equally responsible for community property debt, there are instances when both spouses are not personally liable for the debts. For example, a creditor may have a community claim and if the community does not have sufficient assets, the creditor can collect from both the community property assets, as well as the spouse who incurred the debt. Absent a court order, the spouse who did not incur the debt will not be liable for that particular debt after the dissolution.

  • In order to equally divide the community debts, the divorce judgment can impose personal liability on one of the parties – even if the debt did not exist before. Remember, the goal is an equal distribution of assets and debts.

Complimentary Consultation With a Neumann Family Law, APC Division of Community Debts Attorney

This brief overview is intended to provide very basic and limited information; it is simply an introduction to the process of dividing community debts. It takes an experienced and skilled family lawyer to fully understand the details and minutia involved in dividing community debts. At Neumann Family Law, APC, we have helped countless clients go through the dissolution of marriage process. It is our professional mission to help empower our clients to attain a state of independence and freedom as they proceed and go forth in their lives during and after the dissolution process. We are compassionate, attentive, focused family lawyers and we serve our clients – and get results. For a complimentary phone consultation, contact Neumann Family Law, APC at (619) 282-1107, or (760) 480-8400.

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(619) 282.1107
(760) 480.8400

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Neumann Family Law, APC

3333 Camino Del Rio South
Suite 140

San Diego, Ca 92108

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