Dissolving a marriage is seldom an easy task, not only emotionally but also financially. Both debt division and the splitting up of assets during a California divorce can have a long-term impact on one’s finances. One major type of debt that must be divvied up when two people divorce is medical expenses.
California is a “community property” state. This means that all debt is usually divided among all parties, so both divorcing individuals end up sharing the medical debt. This might dramatically simplify the debt-division process; however, it also leaves a person open to assuming debt that he or she did not have a part in accumulating.
This is contrary to what happens in an “equal division property” state. In this type of state, the court considers many factors when deciding who will be responsible for what portion of the medical debt. For instance, the court may examine whether the two individuals were living with each other when the debt ended up being acquired.
Knowing how medical debt and other types of debt may affect one’s financial situation in California might help to reduce stress as well as help one learn to handle other types of expenses brought on by divorce. Financial documents such as loan papers, credit statements and bills may provide a financial snapshot that might help a person to determine which course of action is best to take during a divorce proceeding involving debt division. Both parties have the right to seek their best interests when trying to resolve the division of assets and debts during divorce.
Source: credit.com, “What Happens to My Debt If I Get a Divorce?“, Leslie Tayne, June 23, 2015