Dividing debt during
divorce can be much harder than dividing assets, as debt is a burden that no one
ever wants to carry. The cleanest way to deal with debt is to pay it off
before the divorce process so that both parties are able to start their
new lives debt free, though certainly a little less well-off. If this
isn't possible, the next best option is that one party agrees to take
responsibility for the debt in exchange for receiving more assets from
the division of property.
The final option is for the couple to share responsibility for the debt.
This is far from ideal, because if one party fails to pay off their portion
of the debt, the other party is still legally responsible for the debt
even if a legal agreement assigns the debt to the other party. This option
leaves both spouses vulnerable and should be avoided where possible.
For more information regarding
property division and divorce in California,
contact Claery & Hammond, LLP to schedule a consultation with a Los Angeles divorce lawyer.