Legal Question in Family Law in California
I live in CA. I will be married for three years on 8/3/10. My husband did not disclose to me the full extent of his debt until late March 2010. I thought he had three credit cards, but there were more credit lines I wasn't aware of. We have been on rocky ground for over a year and were already considering dicorce when this bankruptcy issue came up. I have good credit (729) and hope to keep it that way. If we have to get a divorce to protect me financially, we have both agreed it would be fair to draw up a marital settlement agreement that clearly assigns the debt to my husband. I did not sign on to any of these cards. They are all in my husband's name, but on two of them (totaling $11,200 in debt), I was added as a signed-on person. I forget the term, but he signed me onto these two cards as would a parent sign on a teenager. Here's my question: is it possible to draft a MSA that protects me from being liable to his creditors for this debt as long as he waits to file bankruptcy until after the divorce is final? I'd like to know if there is any way that I can be free from this debt. Thank you very much for your time and for providing this service!
2 Answers from Attorneys
Unfortunately as between the credit card companies and the two of you, you are jointly liable for all debt incurred from the date of marriage to the date of separation without intent to resume the marital community. In addition, to a large degree they can reach community assets to satisfy the debts even if they were incurred pre-marriage. You can get a MSA and judgement that he pay off all the debts, but if he does not, they can come looking to you for debt incurred during marriage and for community assets for the prior debt. So just getting divorced and assigning him the debt doesn't fully protect you. By structuring the MSA as carefully as possible, you can minimize these risks, but not eliminate them. You definitely need a family law attorney.
Mr. McCormick is right, and addresses the problem squarely. You and your husband would be the only signatories to the MSA, so it would not be binding on the credit card companies, or any of their collection agencies. At best, you would only be able to get contribution from him if they went after you.