Debt and Community property law in California

[kenmeyerjr]

What is the name of your state (only U.S. law)? California

We just moved back to California after being in Georgia and Virginia the last 10 years or so. During that time I accrued two large debts. They are student loans and back child support from a previous partner (not married). My worry has been lately that I might die and leave these two huge debts for my wife and family to deal with, which I would not want to happen. My questions are, first, is my wife automatically liable for either or both of these debts if I die and second, if we get divorced before then, would she not be liable? I have considered divorce, even though I am not in a good financial space, because of the worry of my wife and two children suffering because of these debts. Any advice?

 

[Eekamouse]

What about the child you aren't supporting? Don't you care about her/him?

 

[LdiJ]

What is the name of your state (only U.S. law)? California

We just moved back to California after being in Georgia and Virginia the last 10 years or so. During that time I accrued two large debts. They are student loans and back child support from a previous partner (not married). My worry has been lately that I might die and leave these two huge debts for my wife and family to deal with, which I would not want to happen. My questions are, first, is my wife automatically liable for either or both of these debts if I die and second, if we get divorced before then, would she not be liable? I have considered divorce, even though I am not in a good financial space, because of the worry of my wife and two children suffering because of these debts. Any advice?

Did either one of those debts accrue during your marriage? If not, they are not your wife's responsibility. However, its not in your wife's best interest to own anything jointly with you nor have any joint bank accounts with you, yet at the same time, anything that she does not own jointly with you will be part of your estate, and will have to be sold to cover your debts, if anything happens to you.

 

[tranquility]

From the California Family Code:

910. (a) Except as otherwise expressly provided by statute, the
community estate is liable for a debt incurred by either spouse
before or during marriage, regardless of which spouse has the
management and control of the property and regardless of whether one
or both spouses are parties to the debt or to a judgment for the
debt.
(b) "During marriage" for purposes of this section does not
include the period during which the spouses are living separate and
apart before a judgment of dissolution of marriage or legal
separation of the parties.


911. (a) The earnings of a married person during marriage are not
liable for a debt incurred by the person's spouse before marriage.
After the earnings of the married person are paid, they remain not
liable so long as they are held in a deposit account in which the
person's spouse has no right of withdrawal and are uncommingled with
other property in the community estate, except property insignificant
in amount.
(b) As used in this section:
(1) "Deposit account" has the meaning prescribed in paragraph (29)
of subdivision (a) of Section 9102 of the Commercial Code.
(2) "Earnings" means compensation for personal services performed,
whether as an employee or otherwise.