Hidden Debts in Arizona Divorce
An overview of who is responsible for hidden debts in a divorce in a community property state.

December 30, 2011 /24-7PressRelease/ -- Hidden Debts in Arizona Divorce
Article provided by Viles Law Office, LLC Visit us at www.vileslawoffices.com/
Going through a divorce is almost always a stressful event. Trying to figure out how to cope financially with life after divorce can be particularly daunting. Some people discover that their spouses had been spending money and hiding it from them, making them wonder how much of those debts they may be responsible for in the division of property. This question can be particularly pressing in community property states such as Arizona.

Community Property

Arizona is a community property state, meaning that all the assets and debts that either the husband or wife acquires during the marriage belong to both of them equally. Arizona statutes list some exceptions to this community property rule, and a spouse claiming that property or debt acquired during the marriage is not community property has the burden of proving so to the court.

Secret Debt

Technically, both spouses are responsible for all debt that either one accrued during the marriage, whether both of their names were on the debt or only one. However, when one spouse amasses debt without the knowledge of the other, the unknowing spouse may not be responsible for the debt. If a spouse can prove to the court during the divorce proceeding that the debt incurred by the other spouse did not benefit the community and that he or she did not know that the other was accruing this debt, the court may assign sole responsibility for the debt to the spouse that incurred it by including a provision in the divorce decree mandating that the debtor spouse pay the debt.

Creditors are not bound by divorce agreements, however, so if one spouse ran up debt, creditors may pursue the innocent spouse. Creditors generally only pursue the people named on the debt, so creditor harassment is more likely if the debtor spouse opened accounts with both spouses' names on them.

The court may order the debtor spouse to use his or her assets from the property settlement to pay creditors so that creditors do not harass the spouse who did not amass the debt. However, if the court does not do that, the innocent spouse has to rely on the debtor spouse to repay creditors and may end up needing to defend him or herself from credit collection actions and having to notify the court that the other spouse is violating the provisions of the divorce decree.

Contact an Attorney

Property divisions in divorce can be complicated, particularly when one spouse is trying to prove that assets or debt are not community property. If you are going through a divorce, contact an experienced division of property lawyer who can help ensure that you receive a fair settlement.

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