CALIFORNIA COMMUNITY PROPERTY LAW
California is
a community property state. Property acquired during marriage
with either spouses income is thus considered “community property” and belongs equally to both spouses. Community debt works the same way as community
property. Debt incurred during marriage can be considered the
debts of the community and potentially enforceable against
both spouses. It is not possible to transfer all assets to
one spouse and all debts to the other spouse for discharge
in bankruptcy. It is possible, however, for one spouse to file
bankruptcy without the other spouse.
Although it is usually better for both spouses to file together, there are times
when it’s perfectly acceptable, and even advantageous for one spouse to file alone. The
interaction of community property law and bankruptcy law is
a somewhat specialized area which requires the advice of a
qualified California Bankruptcy Attorney.
If
you need help with California community property law, please contact a Lawyer who is familiar with California community property law today and have your questions answered.
Community
Property can include things such as:
- Stock
options;
- Pension
or retirement plans;
- Intellectual
property;
After the bankruptcy
is filed, all community property acquired is protected by the
discharge. What that means is that even if only one spouse
files for bankruptcy, the community property after a bankruptcy
is not liable for the debts that existed when the bankruptcy
was originally filed. 11 U.S.C. 524(a)(3). Though, it may be
possible that any other property of the non filing spouse may
be accountable.
If
you need help with California community property law, please contact a Lawyer who is familiar with California community property law today and have your questions answered.
