Legal Question in Family Law in California

My debt is $70k and my husband's is $50k. We own two homes worth approx $300k each with $100k bal remaining on each home. My husband is refinancing our second property (which is a rental) and is going to pay HIS debt only and pocket the rest. I cannot be put on this loan as my credit is very bad due to being four months behind in payments (loss job), but my name will still be on deed as community property.

If I divorce husband and I and my children live in the primary home, I know I could not refinance due to my very bad credit, would his name still be on title on our primary home? There is still 8 yrs left to go on the $100k. Would my credit card debt of $70k be demanded by my creditors before the divorce is final? What happens? We agreed several years ago that me and the children would get primary house and he would keep rental property if we ever divorced.


Asked on 9/18/09, 11:07 pm

1 Answer from Attorneys
Robert Mccoy Law Office Of Robert McCoy

If you file for legal separation or divorce before the sale of the rental property is final, your husband will not be able to pocket the money and 1/2 will belong to you. In your situation, you could take your $100k from the rental property, and apply to the residence. You would then have $200k equity in the residence and your husband would have $100k, as well as $100k in his pocket. Should you stay in the residence and maintain it until your last child turns 18, you and your husband could then split the proceeds of sale, you would get 2/3 and your husband would get 1/3. As housing prices are starting to go back up, both you and your husband could win from this arrangement. As far as paying off your debt, if your husband is required to pay spoousal support, he could be required to pay the debt for you in lieu of a portion of his spousal support. You could also file a chapter 13 bankruptcy and pay the debt over 5 years, while receiving spousal support.

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Answered on 9/19/09, 5:58 pm


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