Bridal Shows And DivorceCommunity Property Debt Can Come Back To You If Your Ex Dies
Louisiana is one of nine community property states in the country. While some people who are going through a divorce find that to be a plus, there are some considerations that they might not have thought about when it comes to community property. It is important for anyone who is going through a divorce in Louisiana to understand the community property laws and how they can affect you now as well as later.
Community property is anything that is acquired during the course of the marriage. People most commonly think of assets when they think of community property; however, debts are also considered a part of community property. This means that all debts and all assets that you and your spouse acquire from the day you say “I do” until the day you become legally separated count as community property.
When you are coming up with a divorce settlement, community property is split down the middle. You will usually get half of the assets and be responsible for half of the debts. This is where things get a little tricky.
Because a divorce settlement is an agreement only between you and your spouse, you might find that you end up having to come out-of-pocket for the debts your ex was responsible to pay. If, for example, your ex dies, creditors can come after you for the money unless the creditor has signed an accord and satisfy agreement.
If your ex passes away and you end up having to pay for the debts your ex was responsible for, you might be able to recoup your money through your ex’s estate. That won’t be possible if the estate is insolvent.
Source: News8000.com, “Your dead ex-spouse’s debt can be your problem” Jeanne Sahadi, Jun. 25, 2014