How are debts allocated in a divorce

Below is a helpful chart about how debts or liabilities are handled in a divorce. Imagine the following:

Scenario 1: John and Emily got married on January 1, 2022. Prior to their marriage, John had incurred a debt of $10,000. According to Fam C §2621, the debt incurred before marriage must be confirmed to the spouse who incurred it, without offset. Therefore, John would be solely responsible for repaying the $10,000 debt.

Scenario 2: Sarah and Michael decided to separate on June 1, 2023, after being married for three years. During their marriage, they accumulated several debts, including credit card debt and a car loan. According to Fam C §§2550–2552 and 2601–2604, debts incurred after marriage but before separation must be allocated as part of the overall division of the community estate. In this case, the debts would be divided equally between Sarah and Michael during the divorce proceedings, subject to any specified exceptions.

Scenario 3: Mark and Lisa have been separated since January 1, 2023, and their divorce judgment was entered on April 1, 2023. After their separation, Mark incurred a debt of $5,000 for medical expenses. As per Fam C §2623, the assignment of a debt incurred after the date of separation but before entry of judgment depends on the purpose for which the debt was incurred. In this scenario, since the debt was for Mark's medical expenses, it would likely be allocated to Mark alone to repay.

Scenario 4: After separating on July 1, 2023, Tom and Sarah are in the process of getting a divorce. During this period, they jointly decide to sell their house. In order to make necessary repairs and renovations to increase the property's value before selling, they take out a home improvement loan of $20,000. Since this debt was incurred for the purpose of jointly enhancing the value of their community property, it could be allocated jointly as part of the overall division of the community estate under Fam C §2623. In this case, Tom and Sarah would share the responsibility for repaying the $20,000 home improvement loan.