There Is No Such Thing As “Community Debt” in Texas
Although lawyers often speak of “community debt” in the context of divorce, there is actually no such term in the Texas Family Code. To be accurate, there are debts that are acquired during the marriage that must be dealt with upon divorce.
Assigning & Division of Debt Requires An Experienced Attorney
Usually, the debts are divided as part of the overall division of the community estate. Whether a debt is paid from community assets or assumed by one party depends on the individual situation. Sometimes, debts are paid from the sale of a residence or stock; occasionally, there’s money in savings to pay off some debt. Often, the debt is assumed by the spouse who receives the asset that secures the debt.
Credit Cards, A Thorny Issue
Credit cards can be a problem if one spouse is the primary party on a majority of the cards. We cannot change the arrangement with the creditor and if one spouse is liable for the debt, it’s risky to allow the other to assume responsibility for that card. If it is not timely paid, the negative notation goes on the credit report of the responsible party, and the divorce decree is meaningless to the credit reporting agency.
Brian J. McNamara is a Houston Lawyer Who Has Divided Hundreds of Thousands Of Dollars Of Debt
At the McNamara Law Office, PLLC in Kingwood, TX, we have resolved hundreds of divorces and assigned huge amounts of debt. In fact, it’s rare that a divorce does not involve debt. Be assured that a heavy debt load is not an unusual situation, and we are experienced at dealing with such issues.
Contact McNamara Law Office now to schedule a consultation with an experienced divorce lawyer specializing in division of debt.
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