Line of credit prior to divorce
I'm going to file for a divorce (in California) and I have 2 questions regarding a line of credit that is in both my and my husband's name. We used $30,000 of the loc towards a investment property that is being built and we weren't going to use anymore of the loc. Well I just found out that my husband has used an additional $7000 from the loc w/out telling me. He "says" he's used it on bills (to include renting his $500 office, paying his secretary's salary and buying marketing materials for his job). Once I file for a divorce, will I be responsible for any of that $7000? Will he have to prove what he's spent it on or will the courts care? My 2nd question is, if I spend any of the loc on things such as buying some new applicances (refrigerator, washer and dryer) for a condo/investment property that we have (was mine prior to marraige but now his name is on it) and I will probably be moving into that property after the divorce, will those purchases be considered a joint debt? If he's spending $7000 on "his" things and I'm responsible for half of that, I at least want to purchase some things the I can use and that he'll be responsible to pay for also. Any help would be appreciated. Thank you.
Re: Line of credit prior to divorce
It's a joint line of credit, so the creditor won't care who took the money - they can attempt to get it back from either of you.
You may be able to get a greater portion of the debt assigned to him throught he divorce proceedings. If at all possible, you should try to separate the debt at the conclusion of the divorce, such that there is no longer any joint debt.
If you go on a spending spree with joint credit to get things for your new household, you should expect the court to make you responsible for that portion of the debt.
Re: Line of credit prior to divorce
Thank you for your response. I just wasn't sure if the $$$ going to his office, and his secretary would be part of "community" expenses...or if our lawyers would more likely see it as "his" expenses that he should pay off himself.
I definitely don't want to go on a spending spree...but chances are he'll buy me out of our brand new house (with new appliances...new everything) and when I move back into my condo (with older appliances and carpet), I want to have newer appliances that are working well. I can't afford to pay for those things in cash right now...so if I used a little of our line of credit...and vowed to pay my portion off, hopefully we could just call it "even". He was "suppose" to hire me as his secretary too and I was going to work for him (for free) while we started a family...but he decided to hire someone behind my back. So, me being responsible for paying her salary isn't something I want to do. My husband is severly Narcissistic. Not fun. Want this to be over soon. Thank you for your help. :)