Liability for debt Flashcards

1
Q

Liability for debt, generally

A
  1. Debt includes liability in contract, tort, and other obligations; incurred at the time a contract is made, a tort occurs, or an obligation arises
  2. Right to reimbursement (unless waived)—either spouse has three years from the date she has knowledge of debt satisfaction (or date of spouse’s death) to exercise right
  3. Liability of community estate
    • Liable for debts incurred by either spouse before/during marriage; upon divorce, the community has a right to reimbursement
    • To protect CP earnings from liability, non-debtor spouse must deposit CP earnings into a separate bank account from which the debtor spouse has no right of withdrawal
    • Creditor can reach CP only if spouse incurred particular debt or it was assigned to him upon divorce/legal separation
  4. Liability of spouse’s SP—liable for debts she incurred before/during marriage (not for other spouse’s debts)
  5. Necessaries of life (food, clothing, shelter, and medical expenses)
    • Living together—married person is personally liable for “necessaries of life” (living expenses consistent with spouses’ station in life)
    • Living apart
    o Only personally liable for “common necessaries of life”—debts required to sustain life
    o If debtor spouse had SP or CP funds at time debt was paid, non-debtor spouse can be reimbursed for SP funds utilized
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2
Q

Pre-existing child and spousal support

A

Treated like a debt incurred before marriage, so community is liable unless the non-debtor spouse shields his earnings

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3
Q

Tort obligation

A
  1. Acting for benefit of community—liability is first satisfied from community estate, then from tortfeasor’s SP
  2. Not acting for benefit of community—liability is first satisfied from tortfeasor’s SP, then from community estate
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