Is an ex-spouse responsible for debt?

Is an ex-spouse responsible for debt?

Generally, each spouse is responsible for the debt in only their name. However, debt collectors do not usually care who was made responsible for the debt by a divorce court, and may attempt to collect your former spouse’s debt from you. Debt acquired before the marriage is not your responsibility.

What happens to debt when you get divorced?

As part of the divorce judgment, the court will divide the couple’s debts and assets. Generally, the court tries to divide assets and debts equally; however, they can also be used to balance one another. For example, a spouse who receives more property might also be assigned more debt.

Can creditors go after ex spouse?

After a divorce, the creditors of your ex-spouse are legally allowed to place liens on assets and the incomes of both of you to clear joint debts. Since in California the courts consider the debts communal, the creditors are free to make good on what either spouse owes with shared assets.

How is debt treated in a divorce?

In California, each spouse or partner owns one-half of the community property. And, each spouse or partner is responsible for one-half of the debt. Community property and community debts are usually divided equally.

Due to its community property laws, California courts will rule that most debts one spouse incurs during the marriage become the responsibility of both spouses after a divorce.

Is finances the leading cause of divorce?

According to the study, financial disagreements were the strongest disagreement types to predict divorce for both men and women. In a poll conducted by this summer, the leading cause of divorce was found to be financial issues, followed closely by basic incompatibility.

Does divorce make you poor?

Generally, women suffer more financially than do men from divorce. About one in five women fall into poverty as a result of divorce. (The 2014 poverty line for a family of three is less than $20,000 a year (click here). About one in four women lose their health insurance for a period of time after divorce.

Who is responsible for ex husband’s or ex wife’s debts?

Ex-spouse Debts : Whether you are responsible for your ex-husband’s or ex-wife’s debts depends on the circumstances surrounding the issue, your state law and perhaps most importantly, who signed the credit contract. For instance, if your name is still on the credit contract then,…

Why did my ex not pay my divorce debt?

It was an amicable split and, as stipulated in the divorce decree, I took some of our combined debt and she took one of our debts in the form of a bank credit card. She remarried and together she and her new spouse decided not to pay on the debt that she assumed in the divorce decree. They declared bankruptcy and listed me as one of the creditors.

What happens to your credit if your ex spouse files for bankruptcy?

Joint or Cosigned Credit Obligations. If your ex-spouse files for bankruptcy, you will be responsible for the debt if you are a joint owner or cosigner. The lender can require you, as a joint owner or cosigner, to make payments on a loan if your ex-spouse declares bankruptcy on the credit.

Who is responsible for credit card debt after divorce?

For instance, if your name is still on the credit contract then, even though you are divorced, you are still responsible for the debt regardless of what the divorce decree states. It’s important to understand that a divorce decree only spells out who is supposed to pay the debt. It does NOT legally change who is responsible for the debt.