Pg 13 Flashcards
How do creditor rights work with regard to divorce?
The community estate is liable for debts incurred by either spouse before or during the marriage until separation, regardless of the spouse that controls the CP or whether one or both are a party to the debt. This means that one spouse can obligate the community for his premarital debt
What is the insulation exception to one spouse being able to obligate the community for his pre-marital debt?
The CP earnings of the non-debtor spouse can be shielded from liability for premarital debts of the debtor spouse if the earnings are held uncommingled in a deposit account that the debtor spouse cannot access. This means he can’t deposit or withdraw from that account
Can one spouse’s SP be liable for the other spouse’s debts?
No. One spouse’s SP is liable for his debts that he incurred before or during the marriage, but not for the other spouse’s debts
What is the exception to one spouse not having his SP be liable for the other spouse’s debts?
A married person is personally liable for debt incurred for necessities of life while the spouses are living together and for common necessaries of life while the spouses are separated and living apart until divorce
What is the reason that the spouses are liable for each other’s common necessaries of life until divorce?
It’s the spouse’s duty to support that continues until divorce and no spouse should be denied the barest necessities of life.
If a debtor spouse had SP that he could’ve used to pay the debt for common necessaries of life, but he didn’t, the non-debtor spouse can get what?
Reimbursement
If a husband and wife are living separately, and the wife incurred $2000 of medical debt where she couldn’t work and she couldn’t pay it, what happens?
That is considered to be a common necessary of life and thus if the husband can pay for it he must
What is the rationale behind having to pay for your spouse’s debts?
California has a strong policy that creditors should be paid debts that are owed to them. The government wants creditors to get as much of the property as is available or necessary and your liability for debt is coextensive with your legal power to manage or control property. California wants to make sure there is property available to meet the obligations of spouses.
What are the necessities of life?
Living costs that are consistent with the spouse’s station in life. I.e.: private school tuition for kids that were already getting private school education
What are considered to be the common necessaries of life?
Expenses that are needed to sustain life such as food, shelter, clothing, and medical care
How is a child or spousal support obligation from a previous marriage treated?
As a debt before marriage
What is the priority when it comes to paying debts of one spouse?
– The debtor spouse’s SP
– CP
How do tort obligations work upon dissolution?
CP is liable for tort debts incurred before or during marriage.
– Before: the non-debtor spouse can shield his earnings from the debt. The SP of the tortfeasor is liable, but not the SP of the innocent spouse
If a tort obligation occurs during a marriage, who pays for it?
– if the tort obligation arose while doing an activity to benefit the community (grocery shopping or taking the kids to school): The priority is insurance policy, then CP, and last is the SP of the tortfeasor
– if it happened not for the community’s benefit: The priority is insurance, SP of the tortfeasor, then CP
When is a tort obligation debt considered to have occurred?
At the time that the tort occurs, not at the time of judgement
