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  1. #1
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    Feb 2019
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    Default Division of Assets and Debts in a Divorce in California

    My wife and I will be going through the divorce process soon here in California, and I am wondering regards our credit card debts and assets. I understand these matters are not simple.

    I will set an example:
    Let's say, prior to our marriage, I owed $10,000 in Credit Card debts. Today I owe $20,000.

    1. So the prior $10,000 CC debts would not apply to our marriage, correct?, but throughout our marriage I paid off for example $5000 off of it. So technically from the $20,000 I owe today, $15,000 are from our marriage. On top, my wife has let's say $10,000 Credit Card debt herself.
    So would I add her $10,000 with only $10,000 from my $20,000, or would the law consider that I had paid of $5,000 of my prior debt in our marriage, and her $10,000 would add with $15,000 of mine?

    How does the law view this?

    2. Furthermore, my wife who will be filing the divorce, is she supposed to address all my assets and debts in her filling, or can she just go ahead and address her own information, and in my response to the divorce I can go ahead and list everything about my assets/debts?

    3.
    And how do I determine the debt owed on Assets? For example, I have some gear that cost $1,000. The credit card had $1,000 available credit. A year after the purchase of the $1,000 gear, the credit card is still at $1,000 from other purchases, like gas, groceries, etc.
    How do we determine how much money is owed on the gear? Do I subtract the payments towards the credit card since the date of the gear purchase?

    Thanks

  2. #2
    Join Date
    Sep 2005
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    Default Re: Division of Assets and Debts in a Divorce in California

    If you are stating that your credit card debt when you married was $10,000, that the balance is now $20,000, and that the sum total of all payments made during the marriage was $5,000, then you might argue that $10,000 was premarital debt. If the card was used throughout the marriage, with payments being made well in excess of $5,000, then the starting and ending balance are not of themselves determinative of whether the premarital credit card debt still exists or should be attributed to the party who owed that balance at the start of the marriage.

    You and your spouse can file what you want in your own pleadings.

    Your debt on a credit card purchase does not necessarily carry over to the item that you purchased with the credit card. Think of the credit card balance as credit card debt, not as debt on past purchases.

  3. #3
    Join Date
    Jul 2018
    Posts
    1,433

    Default Re: Division of Assets and Debts in a Divorce in California

    Quote Quoting blaze678
    View Post
    My wife and I will be going through the divorce process soon here in California, and I am wondering regards our credit card debts and assets. I understand these matters are not simple.

    I will set an example:
    Let's say, prior to our marriage, I owed $10,000 in Credit Card debts. Today I owe $20,000.

    1. So the prior $10,000 CC debts would not apply to our marriage, correct?, but throughout our marriage I paid off for example $5000 off of it. So technically from the $20,000 I owe today, $15,000 are from our marriage. On top, my wife has let's say $10,000 Credit Card debt herself.
    So would I add her $10,000 with only $10,000 from my $20,000, or would the law consider that I had paid of $5,000 of my prior debt in our marriage, and her $10,000 would add with $15,000 of mine?

    How does the law view this?
    It is and isn't simple. It's simple in that, unless one of you proves otherwise, the court will assume that the balance of a card on the date of separation is community debt that should be divided evenly. It's not simple to prove otherwise.


    Quote Quoting blaze678
    View Post
    2. Furthermore, my wife who will be filing the divorce, is she supposed to address all my assets and debts in her filling, or can she just go ahead and address her own information, and in my response to the divorce I can go ahead and list everything about my assets/debts?
    Review the Judicial Council petition and response forms and consult with a local family law attorney.


    Quote Quoting blaze678
    View Post
    And how do I determine the debt owed on Assets? For example, I have some gear that cost $1,000. The credit card had $1,000 available credit. A year after the purchase of the $1,000 gear, the credit card is still at $1,000 from other purchases, like gas, groceries, etc.
    How do we determine how much money is owed on the gear? Do I subtract the payments towards the credit card since the date of the gear purchase?
    Unsecured debt such as credit card debt doesn't count. Your "gear" that was purchased for $1,000 a year ago is presumably worth significantly less than that now. Unless that "gear" is subject to a security interest of some sort, there is no "debt owed on the [a]sset." For most folks the only assets for which this is a relevant issue are their homes and cars.

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