Sorting out debt during divorce can feel like yet another thing stacked against you. But you don’t have to figure this out alone.
If you’re going through a divorce in Cerritos and wondering how debt will be divided, you’re not alone. Divorce is hard enough emotionally—figuring out who is responsible for which debts can feel like a second job. But what about the car loan or the mortgage? What about your credit card debts? Is it all split down the middle?
These questions are important, and the answers can have a lasting impact on your financial future.
At RM Law Group LLP, our Cerritos divorce attorneys will walk you through how debt is divided during a divorce in California, what community property means, and what steps you can take to protect yourself. If you feel overwhelmed, that’s understandable. The good news is that we are here to help.
California Is a Community Property State—What Does That Mean for Debt?
In California, the law views most debts incurred during the marriage as community debt. That means both spouses are equally responsible for it, even if the debt is only in one person’s name.
So, if your spouse opened a credit card during the marriage and you didn’t even know about it? You could still be on the hook for half.
This applies to many types of debt, including:
- Credit cards
- Car loans
- Mortgages
- Personal loans
- Medical bills
- Some business debts
But there are important exceptions, and this is where things get more complicated.
Not All Debt Is Split 50/50
While California law starts with the idea of equal division, not every debt is treated the same. A judge—or a negotiated settlement—may divide debts differently based on a few key factors.
When Debt Might Be Considered Separate Property
Some debts may be separate rather than community, meaning they belong only to one spouse. A few examples:
- Debts before the marriage: If your spouse had student loans or credit card debt before you married, they usually keep responsibility for those.
- Debts after separation: California generally uses the date of separation as the cutoff point. If your spouse opened a new credit card after the separation, that debt may be theirs alone.
- Debts not benefiting the family: If your spouse spent money on something completely unrelated to the marriage, like gambling or an affair, a judge may assign that debt only to them.
What About Student Loans?
This is a common source of confusion. If one spouse took out student loans during the marriage, the court may consider whether the loan benefited the couple. If the degree helped increase household income, it might be split. But if it didn’t, a judge might assign that debt to the person who took it out.
What If the Debt Is in One Spouse’s Name?
It’s easy to assume that if a loan or credit card is in your spouse’s name only, it’s their responsibility. That’s not always true. If the debt was taken on during the marriage and used for shared purposes—like groceries, rent, or household bills—it’s likely to be considered community debt.
The name on the account doesn’t automatically determine who pays.
What Happens to the Mortgage?
If you and your spouse bought a home together, your mortgage is probably a shared responsibility. One of three things typically happens:
- One spouse keeps the home and refinances the mortgage in their name
- The home is sold, and the profits (and debt) are divided
- Both spouses continue owning the home jointly for a set period (not common, but possible in some situations)
A mortgage is a large financial obligation, so how you handle it will impact your post-divorce stability. This is something you’ll want to discuss carefully with your Cerritos divorce attorney.
Are You Responsible for Your Spouse’s Business Debts?
If your spouse started or ran a business during your marriage and borrowed money for it, that debt might be considered community debt—even if you weren’t involved. But courts will look at whether the business benefited the household and how finances were handled.
If business records were murky or your spouse was hiding income, a Cerritos divorce lawyer can help investigate and make sure you’re not stuck with unfair debt.
How Do Judges Divide Debt in California Divorces?
If you and your spouse can’t agree on how to split debts, a California judge will decide. They’ll look at:
- Whether the debt is community or separate
- When the debt was incurred
- How the debt was used (for household needs vs. personal gain)
- The income and earning capacity of each spouse
- Who is better able to pay certain debts
In some cases, judges may assign more debt to one spouse if they are keeping more assets or earn significantly more money.
Contact Our Cerritos Divorce Attorneys
Sorting out debt during divorce can feel like yet another thing stacked against you. But you don’t have to figure this out alone.
If you’re facing divorce in Cerritos and have questions about debt division, we’re here to help. Our California divorce lawyers understand how overwhelming this time can be, and we’re committed to helping you make informed decisions, so you don’t feel buried by uncertainty or stuck with debt you shouldn’t be responsible for.
Call RM Law Group, LLP today at 866-706-3160, fill out our confidential contact form, and we’ll be happy to answer your questions.
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