What Happens to Marital Debts After A Divorce In San Jose?

When getting divorced in San Jose, dividing property is only part of the financial picture. Marital debts, such as credit cards, car loans, and mortgages, can be just as complex, and sometimes even more contentious.

Understanding how joint debts are handled under California law can help you protect your financial future. Our experienced San Jose divorce lawyer explains what you need to know.

Community vs. Separate Debt In San Jose Divorce Proceedings: How California Law Applies

California is a community property state. Assets and debts you and your partner accumulated during your marriage are generally considered jointly owned.

Under Section 910 of the California Family Code, these debts may be divided between the parties, regardless of whose name is on the account. Community debt often includes:

• Joint credit card balances;
• Car loans;
• Mortgages;
• Medical bills;
• Personal loans used for marital expenses;
• Outstanding taxes, utility bills, and other jointly owned debts.

Keep in mind that your spouse may be solely responsible for any marital debts used for non-marital purposes, especially if they didn’t benefit the household. Examples include money spent on an affair or due to gambling or other addictions.

Separate debts, which are those taken on before the marriage or after the couple officially separated, are generally not subject to division in a San Jose divorce.

Debt Division and How To Protect Your Rights In A San Jose Divorce

California courts generally aim for an equal division of community debts during divorce, but the court may consider factors like each spouse’s income, assets, and ability to pay.

One major issue with dividing debt in a San Jose divorce is that your divorce judgment doesn’t bind creditors. Even if the Santa Clara County Family Court orders your ex-spouse to pay off a joint credit card or car loan, the creditor can still come after you if the payments aren’t made.

In some San Jose divorce cases, couples may choose to sell an asset, like a home or vehicle, to pay off the related debt and avoid complications. Speak with an experienced San Jose divorce lawyer about debts tied to businesses, student loans, or tax obligations, as these areas can get particularly complex under California law.

When dealing with divorce debts, steps you can take to protect yourself financially, both now and in the future, include:

• Close or refinance joint accounts whenever possible.
• Transfer debt to individual accounts so you’re not financially tied to your ex.
• Request indemnity clauses in your divorce judgment to protect yourself if your ex defaults.
• Monitor your credit report regularly for missed payments or new activity.

Discuss Your Options With Our Experienced San Jose Divorce Lawyer

Dividing joint debt in a San Jose divorce isn’t just about fairness. It is about protecting yourself from financial risk long after the divorce is final. At Argyris Mah, LLP, we can help you navigate California’s community property rules and craft a strategy that shields your credit and your future.

To discuss your options, contact our experienced San Jose divorce lawyer today and request a confidential consultation.

Sources:

leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=FAM&division=4.&title=&part=3.&chapter=2.&article

santaclara.courts.ca.gov/divisions/family-division