Paying Off Debts in a California Divorce-Who Is Responsible?
Who is Responsible for Debt in a California Divorce? Protecting Your Credit
Last Updated March 31, 2026
Divorce is stressful enough without watching your credit score plummet. A common frustration for many
Californians is discovering that their spouse’s financial habits—or a lack of cooperation during the split—is damaging their financial future.
We recently received a question from someone facing this exact “credit nightmare”:
“Before my marriage, I had a 750-credit score. Now, it’s 500 because my spouse had bad credit and everything was put in my name. We have assets to pay off the debt, but my wife refuses. She wants me to settle with creditors, which will haunt my credit for seven years. Do I have the right to demand the debts be paid in full using our assets?”
Understanding Community Debt in California
In California, the general rule is simple: Debt acquired during the marriage is community debt. Whether the credit card or loan is in your name, your spouse’s name, or both, if the debt was used for the benefit of the community (goods, services, or living expenses) between the date of marriage and the date of separation, both parties are generally equally responsible.
Can Your Spouse Force You to Settle?
The short answer is no. Your spouse does not unilaterally dictate how community debt is handled. If you have community assets (like a home, savings, or investments), you have the right to request that those assets be used to satisfy community obligations.
The Complexity of Reimbursements: Epstein and Watts Credits
Dividing debt isn’t always a 50/50 split of the remaining balance. California law includes specific provisions for reimbursements that often require an experienced attorney to navigate:
- Epstein Credits: If you use your separate property funds (money earned after separation) to pay down community debts, you may be entitled to reimbursement.
- Watts Credits: If one spouse has the exclusive use of a community asset (like the family car or home) after separation, the community may be owed “rent” for that use.
- More Information on Dividing the House in Divorce: Read this article for more information on dividing the maritial residence in a divorce.
Your Path Forward: Disclosure and Negotiation or Trial
To protect your credit, you must follow the formal California divorce process:
- Preliminary Declarations of Disclosure: You and your spouse must exchange Form FL-150 (Income and Expenses) and Form FL-142 (Schedule of Assets and Debts).
- Negotiation or Litigation: If your spouse refuses to agree to pay off the debts with community assets, a judge can intervene. At trial, the court has the power to order the sale of assets to ensure debts are satisfied and your financial standing is preserved.
Frequently Asked Questions: Divorce and Debt in Los Angeles
- Is debt in only one spouse’s name still “community debt”?
Yes. In California, any debt incurred between the date of marriage and the date of separation is presumed to be community debt, regardless of whose name is on the account. If a credit card was opened and used during the marriage for household expenses or travel, both spouses are generally 50% responsible for that balance in a divorce.
- What happens to debt incurred after we separate?
Generally, any debt you or your spouse take on after the legal date of separation is considered separate property debt. The “community” is no longer responsible for those charges. This is why establishing an accurate date of separation is one of the most critical steps in your Los Angeles divorce filing.
- Can I get reimbursed if I’m the only one paying the mortgage during the divorce?
Possibly. Under California law, these are known as Epstein Credits. if you use your separate earnings (money made after separation) to pay down community debts like a mortgage or joint credit card, you may be entitled to reimbursement for those payments during the final division of assets.
- If my spouse stays in our community home during the divorce, do they owe me “rent”?
In many cases, yes. This is referred to as Watts Credits (or Watts Charges). If one spouse has the exclusive use of a community asset—like the family home or a luxury vehicle—after the date of separation, the other spouse may be entitled to a credit for half of the fair market rental value of that asset.
- Does a divorce decree stop creditors from coming after me?
No. This is a common and dangerous misconception. A California family court judge can order your spouse to pay a debt, but that order does not bind the creditor. If your name is still on a joint account and your ex-spouse fails to pay, the creditor can—and will—pursue you and report the delinquency to your credit bureau. Protecting your credit requires closing or refinancing joint accounts as part of the legal process.
Don’t Let a Divorce Ruin Your Financial Future
You don’t have to navigate “credit issues” alone. Whether you need a full-service legal representative or a flat-fee consultant to help you prepare your disclosures, we are here to help.
Contact Galen Gentry today for a Free Strategy Session to protect your assets and your reputation.
Attorney Galen Gentry is a top rated Divorce and Family Law Attorney in Los Angeles County from his office in Woodland Hills, CA, With over 30 years of experience protecting people facing divorce related debt issues in Los Angeles County Family Law Court and the Family Law Courts in Orange, Ventura, Riverside, San Bernardino and San Diego.
