How are credit card debts, car loans, and student loans typically divided between spouses in a California divorce?

In California, debts incurred during the marriage are typically divided equally between spouses, while student loans are a major exception and are usually assigned to the spouse who received the education. Here is a step-by-step guide to how these debts are handled. Step 1: Gather All Debt Documentation Collect the most recent statements for all debts. This includes credit card statements, auto loan agreements, and student loan promissory notes and balances. For each debt, identify the date the account was opened, the balance on the date of separation, and the current balance. Step 2: Determine Your Date of Separation The date of separation is a critical date that you and your spouse must agree on. It is the day one spouse expressed the intent to end the marriage and their conduct was consistent with that intent. Debts incurred after this date are generally considered the separate responsibility of the person who incurred them. Step 3: Categorize Your Debts Create a list of all debts and categorize them. Debts incurred between your date of marriage and your date of separation are presumptively "community debts" to be divided equally. Debts from before marriage or after separation are "separate debts" belonging to one spouse. Step 4: Prepare and File Your Disclosures As part of your divorce, you must complete and exchange financial disclosures with your spouse, including the Schedule of Assets and Debts (Form FL-142). List all categorized debts on this form and propose how they should be divided. This form is filed with the court and served on your spouse. Important Details and Nuances: Credit Card Debt: If the debt was for family expenses like groceries or vacations, it is a community debt. If one spouse ran up debt for non-community purposes (like funding an affair), a court may assign that specific debt to them alone. Car Loans: The loan typically goes with the car. The spouse who keeps the vehicle is responsible for the loan. The community property portion is the equity in the car (its value minus the loan amount), which is then divided. Student Loans: Under Family Code Section 2641, student loans are assigned to the spouse who received the education or training, without offset. The only exception is if the community received a substantial benefit from the education, such as a significant increase in income that benefited both spouses. Warnings and Limitations: A divorce decree does not change your contract with a creditor. If your spouse is assigned a joint credit card in the divorce but fails to pay, the creditor can still legally pursue you for payment. This is general information and does not constitute legal advice. For complex situations, especially those involving significant debt or disputes over the date of separation, you should consult with a qualified California attorney.