(16) Community Property: Rights of Creditors

Question 1

Before/During Marriage Debts

Answer 1

Creditors may reach community property to satisfy debts incurred before or during the marriage including debts for child support and spousal support. A non-debtor spouses earnings are protected if: (1) the debt occurred before the marriage; and (2) the earnings were held in a separate account to which the debtor did not have access and no comingling occurred.

Question 2

Personal Debts

Answer 2

A persons separate property can only be reached to satisfy their personal debts including debts incurred after marriage.

Question 3

Necessity Debts

Answer 3

Community property and separate property may be reached to satisfy necessity debts during marriage, but when separated the community is only obligated to pay for a spouses necessities in emergency situations.
*Necessities include food, shelter, and medical expenses.

Question 4

Tort Liabilities

Answer 4

If the debtor was acting to benefit the community when the tort occurred, then community property must be used before separate property. If the debtor was not acting to benefit the community then separate property must be used before reaching community property.

Question 5

After Divorce

Answer 5

Creditors cannot reach community property awarded to a spouse after divorce unless (a) that spouse incurred the debt; or (b) was assigned the debt by the court.

Question 6

When does a debt incur?

Answer 6

A debt is incurred at the time the obligation to pay arises.