How is marital debt distributed?

In California, the court typically works to distribute marital debt equally among the spouses during a divorce. Marital debt is any debt incurred during the marriage, such as loans, credit card balances, and medical bills. The court will review the marital debt, and then each spouse will be held responsible for his or her own separate debt. However, if the court finds that one spouse has greater financial resources, or is more able to pay off the debt, they may order that spouse to assume a greater portion of the marital debt. In addition, if the court finds that one spouse has misused marital funds or assets during the divorce process, they may require the guilty party to repay the other spouse for those amounts. It is important to note that if a debt was accumulated prior to the marriage, the court may not require one party to assume that debt. Lastly, California law allows for couples going through a divorce to reach an agreement on how to distribute marital debt. Spouses can try to negotiate a divorce settlement that allocates responsibility for the debts evenly, or according to their ability to pay. It is also possible to include other financial commitments, such as alimony and child support, in the agreement. If both parties are in agreement, the court will typically approve the agreement, unless it is found to be unfair or unreasonable.

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How is marital debt distributed?

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