Unfortunate news for California has been spreading this week. It’s no secret that one of the major reasons for divorce is finance, but new reports suggest that divorce isn’t the end of the financial struggle. Couples, or individuals, in Orange County are much more likely to become bankrupt following a divorce.
California is a community property state, meaning both spouses are liable for all debts that they accumulate during the marriage, regardless of which spouse incurred the debt. When a couple gets divorced, both parties continue to be liable for joint debt obligations.
For example, if a couple acquires joint credit card debt while married, but the debt is assigned to only one of the spouses following a divorce, the other spouse may still be liable in the eyes of the creditor should the first spouse fail to make payments.
If you’re dealing with divorce and bankruptcy, seek the counsel of an attorney experienced in both bankruptcy and family law. Divorce and bankruptcy are heavily correlated and you’ll want to work with someone that can help you navigate both as smoothly as possible.