My Ex Racked Up Credit Card Debt in Secret - What Are My Options?

Discovering that your spouse has accumulated credit card debt in secret can be a shocking revelation. It's an unfortunate situation that many individuals face during divorce proceedings. If you're in California, a state that follows community property law, this news can be particularly alarming.

Understanding Community Property

In California assets and debts acquired during marriage are generally considered community property, meaning they are equally owned by both spouses. This includes income, real estate, and yes, credit card debt. So, if your ex-spouse racked up credit card debt during your marriage, you could potentially be held responsible for half of it.

Separate vs. Community Debt

However, not all debt is considered community debt. Any debt incurred before marriage or after separation is usually considered separate debt and is the sole responsibility of the spouse who incurred it. If your ex-spouse accumulated credit card debt after you were officially separated, it might not be considered a shared responsibility.

Proving Misappropriation of Funds

In cases where one spouse has secretly accumulated debt, it might be possible to argue that they misappropriated marital funds. This means they used shared assets for their own personal benefit, without your knowledge or consent. If you can prove this, the court may rule that the debt is the sole responsibility of the spouse who incurred it.

Misappropriation of marital funds, also known as dissipation of assets, occurs when one spouse uses marital assets for their own benefit while the marriage is undergoing an irretrievable breakdown. This could involve spending money on things like extravagant personal items, vacations, gifts for a romantic interest outside the marriage, gambling, or any other expenditure that doesn't benefit the marital estate.

Misappropriation of marital funds can significantly impact the division of assets during a divorce. Courts generally aim to distribute marital property equitably between the two parties. If one party has misappropriated marital funds, it may result in an unequal division of assets to compensate for the loss.

Proving misappropriation of marital funds can be challenging.

It usually requires showing that:

  • The marriage was undergoing an irretrievable breakdown when the funds were spent.
  • The accused spouse spent the money for a purpose unrelated to the marriage.
  • The other spouse did not agree to or benefit from the expenditure.

Evidence may include financial records, credit card statements, receipts, and other documentation showing when and how the funds were spent. It's crucial to work with an experienced divorce attorney who understands the intricacies of these matters and can help gather the necessary evidence.

If the debt was accrued for necessities such as groceries, utilities, or medical expenses, it would typically be considered community debt. However, if the debt was accumulated for unnecessary personal expenses, like luxury goods, an affair, or vacations, you may be able to argue that you should not be held responsible.

Experienced Legal Help is Essential

These situations are complex and navigating them requires the expertise of a seasoned family law attorney. A lawyer can help you gather evidence, build a case, and advocate on your behalf in court. They can also advise you on other strategies to protect yourself from your spouse's secret debt.

At Burch Shepard Family Law Group, we understand how shocking and stressful it can be to be faced with your partner's unexpected debt. We are here to help you navigate these complex matters and protect your interests in court.

We know that every family's situation is different, and we will take the time to review your case in detail and provide you with clear legal guidance on how to proceed. From there, we'll fight tirelessly to ensure your rights are upheld in court so that you can move forward with your life. If you're struggling to come to terms with your ex-spouse's secret debt, Burch Shepard Family Law Group can help.

Reach out online or call us at (949) 565-4158 to schedule a consultation with one of our experienced family law attorneys.