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Community Property âą Analysis of Creditor's Rights
CPROP#055
Legal Definition
Contract debts are incurred at the time the contract is made.
Tort debts arise when the tort is committed, but a non-tortious spouse is not personally liable for the tortious spouse's torts, unless they would be liable even if the parties were not married.
Criminal liability (e.g., restitution, fines) is treated the same as tort liability. Child or spousal support from a previous marriage is treated as a debt incurred before marriage.
Tort debts arise when the tort is committed, but a non-tortious spouse is not personally liable for the tortious spouse's torts, unless they would be liable even if the parties were not married.
Criminal liability (e.g., restitution, fines) is treated the same as tort liability. Child or spousal support from a previous marriage is treated as a debt incurred before marriage.
Plain English Explanation
Debts are obligations to pay money, and they can arise in different ways. When two people make an agreement, like buying a car, the debt starts when they shake hands on the deal. This is called a "contract" debt. If someone harms another person, like in a car accident, they might owe money for the damage. This is called a "tort" debt. However, if one spouse does something wrong, the other spouse doesn't have to pay for it unless they would have to even if they weren't married (for example, if the spouses are considered jointly and severally liable, which we discuss in the Torts deck). If someone breaks the law and has to pay a fine, it's treated like a tort debt. Lastly, if someone owes money for child or spousal support from a past marriage, it's considered a debt from before their current marriage. These rules exist to make it clear who owes what and when.
Hypothetical
Hypo 1: Bob and Amy get married, and Bob has an old credit card debt from before they met. After they get married, Bob makes a new purchase on the same credit card. Result: The debt from the purchase Bob made before the marriage is his separate debt. However, the new purchase he made after getting married is considered a community debt, meaning both Bob and Amy might be responsible for paying it off.
Hypo 2: Amy gets into a car accident and is found at fault. The injured party sues Amy, and the court awards the injured party a large sum of money. Bob wasnât involved in the accident at all. Result: The debt from the lawsuit is a tort debt that arises when Amy committed the tort (the car accident). Bob wouldnât be personally responsible for paying this debt unless itâs something he wouldâve been liable for even if they werenât married.
Hypo 3: Before marrying Amy, Bob was ordered to pay child support for his child from a previous marriage. Bob continues making these payments after he marries Amy. Result: The child support payments are considered a debt incurred before the marriage, so Amy isnât responsible for paying them. This is Bobâs separate obligation.
Hypo 4: Bob gets a fine for illegally dumping trash while he and Amy are married. The fine is substantial, and the court orders Bob to pay restitution. Result: The criminal debt from the fine and restitution is treated like a tort debt. Bob is responsible for paying it, and Amy wouldnât be liable for it unless itâs something she wouldâve been liable for even if they werenât married.
Hypo 2: Amy gets into a car accident and is found at fault. The injured party sues Amy, and the court awards the injured party a large sum of money. Bob wasnât involved in the accident at all. Result: The debt from the lawsuit is a tort debt that arises when Amy committed the tort (the car accident). Bob wouldnât be personally responsible for paying this debt unless itâs something he wouldâve been liable for even if they werenât married.
Hypo 3: Before marrying Amy, Bob was ordered to pay child support for his child from a previous marriage. Bob continues making these payments after he marries Amy. Result: The child support payments are considered a debt incurred before the marriage, so Amy isnât responsible for paying them. This is Bobâs separate obligation.
Hypo 4: Bob gets a fine for illegally dumping trash while he and Amy are married. The fine is substantial, and the court orders Bob to pay restitution. Result: The criminal debt from the fine and restitution is treated like a tort debt. Bob is responsible for paying it, and Amy wouldnât be liable for it unless itâs something she wouldâve been liable for even if they werenât married.
Related Concepts
When a debt is incurred before marriage, whose property is available to creditors attempting to satisfy the debt?
When a debt is incurred during marriage, whose property is available to creditors attempting to satisfy the debt?
When debts are incurred for the benefit of the community, whose property is available to creditors attempting to satisfy the debt?
When debts are incurred NOT for the benefit of the community, whose property is available to creditors attempting to satisfy the debt?
