When it comes to finances, most of us have assets and debts. In a divorce situation, you will need to divide all property, which includes all assets. However, you may be unclear on what happens with the debt you and your spouse share when you divorce in San Jose. This is where things can get a little complicated because it depends somewhat on the type of debt.
According to LearnVest, because California is a community property state, any debt you have incurred is considered mutual debt. It will most likely be divided equally between you and your spouse. Once you have separated, though, any new debt belongs to whoever incurred it.
Some shared debts, though, are treated differently. The main one being your mortgage. It is best to decide what will happen with the mortgage before your split up. This is because the lender sees you as two separate people both obligated for the mortgage even when you are married. So, you will remain equally responsible for it even after a divorce.
Ideally, you should get rid of all shared debt. This means paying off credit cards and loans. You should also decide the course of action you want to take with your mortgage.
When it comes to debt, you should think about your future credit. By separating debt as soon as possible, you can help safeguard yourself against any debt your spouse may start to rack up after your relationship has ended but before the divorce is final. This information is for education and is not legal advice.