Responsibility for Former Spouse’s Debt

Under California’s community property laws, a divorced spouse may be responsible for the former spouse’s debts. According to California law all debts incurred by either spouse during marriage are usually considered community property. After divorce, creditors can recover against either spouse for community property debts. Creditors can also seek to recover against “formerly community property” that was assigned to you in your divorce judgment.

Your legal obligations to satisfy community debts does not end once your former spouse files for bankruptcy. After your former spouse files for bankruptcy, creditors may seek from you repayment of debts even though the court assigned such debts to your former spouse.

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Divorce and Bankruptcy

The problems of a divorce are compounded by the need for bankruptcy. Whether you file for bankruptcy before divorce depends on what divorce issues must be resolved. Making a mistake during a divorce with bankruptcy can be very costly.

Once the married couple is divorced, they can no longer file a joint bankruptcy. While filing together will save the costs of an additional bankruptcy case, it may prevent you from maintaining a Chapter 13 bankruptcy. It is best to consult a bankruptcy attorney in California because of the potential complexities of dealing with both divorce and bankruptcy. Unfortunately there is not an easy, do-it-yourself solution to bankruptcy.

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