California Divorce Debt Settlement
Going through a divorce is stressful enough, and having to contend with debt during and following a divorce can make an already difficult situation seem unbearable.
Fortunately, McFarlin LLP attorneys are here to help you with your California divorce debt settlement issues.
Financial Fallout of Divorce
Through the course of their marriage, most couples incur both individual and joint forms of debt. Sometimes finances are so intertwined that it is challenging to separate who owes what to whom. Often, couples share credit card accounts and appear on the same mortgage, leaving them each vulnerable to creditors and collections actions.
If you anticipate collections issues as a result of your divorce or you are already facing a situation where you will be held responsible for the debt you cannot pay, a consultation with a lawyer familiar with divorce debt settlement issues may be warranted.
Dividing Divorce Debt in California
Generally speaking, in California, divorcing spouses are liable for any community debt incurred during the marriage. It is up to the court to determine the most equitable division of these liabilities. While it is each party’s responsibility to pay whatever debt is allocated under the terms of the divorce decree, if one party fails to pay an assigned debt, creditors can still go after the other party. The divorce decree does not erase either spouse’s responsibility for the liability. Zealous enforcement of the divorce decree is one remedy, but that can be costly and time-consuming.
In addition, if one party is unable to pay his assigned debt and declares bankruptcy, creditors may pursue the other party. As for the party who declares bankruptcy, this does not eliminate the obligation to pay spousal support (alimony) or make child support payments.
It is easy to see how pursuing advice regarding divorce debt settlement could become necessary.
Seeking California Divorce Debt Settlement Assistance
It is not unusual for creditors to work with divorcing debtors. If you approach your creditors and explain the situation, you may be able to get some relief. If you find yourself in a situation where you cannot pay the debt you are are responsible for, the attorneys at McFarlin LLP can negotiate a divorce debt settlement on your behalf.
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