How to Separate Debt in a Divorce in the State of California
- 1). Calculate the total value of all the community property and debt for the couple. Not everything acquired during the marriage is community property. Items purchased during the marriage with assets of one spouse that were brought into the marriage may be in part separate property. For example, if the wife had $10,000 in cash before the marriage and used that to make a down payment on a car after the marriage, $10,000 of the equity in the car is the separate property of the wife. The rest of the equity in the car is community property.
- 2). Divide the property between the parties, keeping in mind that the division should be roughly equal. Assign any secured debt to the party receiving the property used as collateral. For example, if one spouse receives the house, that spouse should be responsible for any mortgages.
- 3). Assign any other debt to make equal the total division of assets minus liabilities between the spouses. The total property assigned to each party does not have to be equal. If one person receives more property, she can be assigned more of the debt to make things equal. In some circumstances, a judge might approve a less than equal division of property and debt. However, that is unusual.
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