Debts and Liabilities

Question 1

When is a debt incurred?

Answer 1

A debt includes liability on a contract, tort, or other obligation and is incurred when the contract is made, tort occurs or obligation arises.

Question 2

When can creditors reach the CP?

Answer 2

The CP is liable for debts incurred by either spouse before or during the marriage, excluding when the spouses were living apart.

After dissolution: liability depends on whether debtor spouse was acting for the benefit of the community

Question 3

Tort liability?

Answer 3

If the tortious spouse acted for the benefit of the community when liability arose, liability is paid first from CP. (remainder SP)

Not for the benefit&raquo_space; SP (remainder CP)