Community debts are any debts that either party in a divorce is responsible for. Community debts are formed before physical separation even if the marriage has already ended. These types of debts are usually split 50% after the couple separates. Any debts incurred before the marriage or after separation are not community debt and each spouse must handle these issues on their own. There are, however, special rules for educational loans and reimbursement for one spouse if community property is used to pay the other spouse’s sole debt.
It is important to remember that even if a court decides who should pay what percentage of the debt, creditors will consider both parties 100% liable even if both names do not show up on the agreement.
