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FC Section 916 - General Ruies of Liablity

Separate Property Liability for Other Spouse's Unpaid Debts

Separate property is liable for a party's unpaid debts after trial if owed at the time of division of the community estate, as is a party's share of community property that is awarded in the property division. If a debt incurred by one spouse before or during marriage is assigned to the other spouse in the judgment, in order for a creditor to enforce a debt judgment against that party they must be made a party to those proceedings.


CALIFORNIA FAMILY CODE

Family Code section 916

(a) Notwithstanding any other provision of this chapter, after division of community and quasi-community property pursuant to Division 7 (commencing with Section 2500):
(1) The separate property owned by a married person at the time of the division and the property received by the person in the division is liable for a debt incurred by the person before or during marriage and the person is personally liable for the debt, whether or not the debt was assigned for payment by the person's spouse in the division.
(2) The separate property owned by a married person at the time of the division and the property received by the person in the division is not liable for a debt incurred by the person's spouse before or during marriage, and the person is not personally liable for the debt, unless the debt was assigned for payment by the person in the division of the property. Nothing in this paragraph affects the liability of property for the satisfaction of a lien on the property.
(3) The separate property owned by a married person at the time of the division and the property received by the person in the division is liable for a debt incurred by the person's spouse before or during marriage, and the person is personally liable for the debt, if the debt was assigned for payment by the person in the division of the property. If a money judgment for the debt is entered after the division, the property is not subject to enforcement of the judgment and the judgment may not be enforced against the married person, unless the person is made a party to the judgment for the purpose of this paragraph.
(b) If property of a married person is applied to the satisfaction of a money judgment pursuant to subdivision (a) for a debt incurred by the person that is assigned for payment by the person's spouse, the person has a right of reimbursement from the person's spouse to the extent of the property applied, with interest at the legal rate, and may recover reasonable attorney's fees incurred in enforcing the right of reimbursement.

Testimonials & Endorsements

  • “Not only is Mr. Peterson’s knowledge of the law beyond measure, he’s able to articulate it so it’s understandable.”
    If you are going through a divorce, Arnold & Peterson is in my opinion the best option available. Mr. Peterson and his assistant Jordyn are top notch. Not only is Mr. Peterson’s knowledge of the law beyond measure, he’s able to articulate it so it’s understandable. He was able to navigate my emotions and help my uphill battle to receive proper visitation as a father. Jordyn never hesitated to reach out within the same business day if documents were needed or for any question I had about the process. Thanks to the team, we resolved the divorce healthfully. I couldn’t be more grateful.
    - Josh Arguijo
  • “I needed the best analysis and advice possible. I found Attorney Thurman Arnold III in Palm Springs.”
    I am a Veteran and Retired Deputy Sheriff. My divorce involved complicated property distribution and spousal support issues. I spent considerable time looking for the best Counsel I could find before I negotiated with my ex-wife and her Attorney. In fact, my case was in another county, but that didn't matter. I needed the best analysis and advice possible. I found Attorney Thurman Arnold III in Palm Springs. Attorney Arnold is a BAR Certified Family Law Specialist. In my humble opinion the best! His review of my case and how "Moore Marsden" property division applied was invaluable. His guidance saved me $30,000 dollars. Thank you, Thurman!
    - Jeff Jones
  • “Mike is adept at managing expectations and being very fair and measured.”
    Needed to modify a settlement and hired Mike Peterson. Mike is very, very knowledgeable and experienced. When you are going through a divorce or child custody issues, it is the most terrifying and stressful experience. Mike is adept at managing expectations and being very fair and measured. I wish I had hired him initially to get it all done straight the first time around. He is very responsive and communicative and understands the client well. Good luck going through this process - have a good guide like Mike without a doubt.
    - Donika McKelvie
  • “I would highly recommend him and the firm”
    Micheal Peterson is very knowledgeable of law and can help you make the best decisions for your family. He does is job with integrity. He helps with giving discounts when he can . I would highly recommend him and the firm . Very good staff .
    - Vincent Hall
  • “Very professional, honest, and handled everything without a hiccup.”
    Arnold & Peterson are a class act. Very professional, honest, and handled everything without a hiccup. When a year had passed, he and Jordyn contacted me to let me know I still had retainer on the books! I had forgot and they sent me the money anyway! For this I am very grateful and cannot recommend them enough. You won’t go wrong with Thurman Arnold. He is definitely the guy to have on your side.
    - Matt Feenstra
  • “Simply the Best of the Best!!!”
    I Highly Recommend Michael C. Peterson at the Law Office of Thurman W. Arnold!!! I hired Michael for my custody case and he is very knowledgeable and took the time to educate me on the process so we can put together a winning strategy. He fought for me and my children in court and successfully won our case. There are no words to describe how grateful and appreciative I am for Michaels service!!! If you are sitting on the fence on which Attorney to hire, do yourself a favor and hire Michael. I would not recommend anyone else!!! Simply the Best of the Best!!!
    - John and Lukes Tube
  • “Mike amazes me by his knowledge of my case, made me feel like I was his only client.”

    I reached out to this law firm 2 years ago when my life was falling apart. My case was assigned to attorney Michael Peterson. I didn't know much about him except few reviews on google but I'm glad I hit the jackpot. Mike amazes me by his knowledge of my case, made me feel like I was his only client. He's very responsive, respectful and and goes above and…

    - Damaris M.
  • “He and Michael Peterson are truly masters of their craft.”
    When my clients have family law issues, I routinely refer them to Thurman Arnold. He and Michael Peterson are truly masters of their craft. Family law can be an unwieldy beast, but they handle it with precision and finesse.
    - Edward Cross

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