Legal Question in Family Law in California
community debt
Hi - I am considering divorcing my
husband of almost 10 years. He
wants my approval to buy a 40K
truck and sell his truck (trade-in
value of 25k), creating a loan of 15k.
He says it won't impact me in the
event of divorce, that he would keep
the truck but would also assume the
loan. He says he will even write me a
prommisory note stating I am not
responsible for the debt. What
happens with community debt? I
know assetts are divided equally, but
are debts divided equally as well?
Would a promissory note be legal and
binding to the courts? Thank you.
1 Answer from Attorneys
Re: community debt
The general rule for secured debts: the party taking the asset that secures the loan takes the loan with it. However, if your name is on the loan before the divorce it remains on the loan until it is paid. If he does not pay the loan for the truck, you would be liable if your name is on the loan.
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