When people discuss the division of property during a divorce, most often they refer to the assets that a couple has. Assets are not the only property that couples have, especially in this day-and-age as the economy continues to struggle — whether you consider the country in a recession or slowly recovering from one.
Debt has become a very serious issue for many couples in California. In fact, even Prince recently filed a lawsuit against a California collection company over debt that he had incurred. For some divorcing individuals, it is simply debt obligations that need to be decided during property division. For others, the debt has become less manageable, involving debt collections as well. Debt collectors may even seek a judgment in court, and once this is done they can do things such as garnish wages, seize assets such as real estate and even levy a bank account. But how does this relate to property division and divorce?
Divorce is not a “one day and done” event — no matter how many websites claim a quick settlement. Filing for divorce does not end the marriage; it isn’t until the court declares it over. Up until that point any property gained or debt incurred is community property — unless the court designates otherwise.
Two spouses may live separately, retain separate bank accounts, in separate income and spend under separate budgets, but one spouse’s actions can still have an effect on the other. Debt and debt collection
Source: The Washington Times, “Singer/musician Prince rains on debt collector,” Steven Brumer, Oct. 24, 2012
Ann A. Thomson (Seal Beach family law attorney) can help. Please call 562-431-4333 or contact her online today.