Disclaimer: This article does not constitute legal advice. If you have any questions about your individual situation it is best to seek the advice of an experienced legal professional.
Have you ever wondered what happens to debt in your California divorce? If you are facing into a divorce, you need expert guidance to help you analyze the marital assets and debts in your divorce. Divorce Options San Diego Mediation & Law Firm has successfully resolved many divorces in California and elsewhere. Our firm can help you understand how California treats assets and debts in divorce and how to factor debt into your marital settlement negotiations.
What happens to debt in your divorce?
You might not think of debt as included in the calculation of your marital assets, but debt belongs on your marital balance sheet just like marital property. Marital debt is treated the same as marital assets in that it is divided into separate property and marital community property. Sometimes the marital debt may be a mix of separate and community obligations. This can become quite complex, as there are many circumstances under which separate debt (just like separate property) can become marital debt, or partial marital debt. Community property analysis in a California divorce works best under the guidance of experienced divorce professionals. Divorce Options San Diego Mediation and Law Firm has expert knowledge of California community property law. We engage our expertise to help you understand the implications of your debt to get the best outcome for everyone. Call us today for a free consultation to learn more.
Separate vs. Community property in a California Divorce
When you work with skilled divorce mediation professionals, they will do a thorough community property analysis to determine what you own and what you owe. In California it can be difficult to determine what is marital property and separate property, and hence what constitutes marital debt. There are many factors to consider when assessing California community property, such as whether assets are gifted or inherited, the type of community property/debt and what it was used for, as well as the date on which you married and the date on which you separated. Some of these determinations can be more complex. For example, while the date of marriage is clear, the date of separation is often less clear. It could be when someone moved out or when the couple agreed to divorce. In mediation you can assess the records and come to an agreement, rather than wasting time and money on conflict.
There are many scenarios involving debt — such as business debt, student debt and debt to family members — each of which demands special consideration. Experienced divorce mediators will thoroughly review your assets and debts, simplifying a complicated picture and allowing you to move forward in compliance with California law.
Reducing Conflict and Bringing Clarity to your Divorce
At Divorce Options San Diego Mediation & Law Firm our West Coast Divorce Mediators conduct a thorough review of all assets and debts on the table. As part of this process we engage both spouses to make a transparent disclosure of assets and debts. This allows you to work collaboratively towards a peaceful divorce settlement. Questions about when and how the property was acquired, with what funds and for what purpose will be efficiently answered, simplifying the marital property determinations and ensuring everyone is satisfied with the process.
If there is any dispute and/or uncertainty about who pays debt, divorce mediation offers strategies to come to an agreement without conflict. Because most divorcing spouses exit a marriage with financial entanglement, asset division rewards care and consideration. Our mediators simplify the process by empowering you to understand your assets and debts, and offering creative ways to divide them that will save you time and money. When you finalize your divorce settlement you should walk away with a plan to pay off any debts and the security to establish your independent future.
If you have any questions about debt in your divorce we offer a no-strings attached initial divorce mediation consultation. We have offices in San Diego, CA and Silicon Valley, or we can mediate your divorce remotely via private and secure teleconferencing services. Call us today to schedule your free consultation
