Liability for debt Flashcards
1
Q
Liability for debt, generally
A
- Debt includes liability in contract, tort, and other obligations; incurred at the time a contract is made, a tort occurs, or an obligation arises
- 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
- 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 - Liability of spouse’s SP—liable for debts she incurred before/during marriage (not for other spouse’s debts)
- 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
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
3
Q
Tort obligation
A
- Acting for benefit of community—liability is first satisfied from community estate, then from tortfeasor’s SP
- Not acting for benefit of community—liability is first satisfied from tortfeasor’s SP, then from community estate