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Legal Aid Society of San Diego receives Family Law ruling client not liable for $30,000 of ex-husband's debt

Friday, August 20, 2010

  • By: Dennis Holtz
  • Organization: Legal Aid Society of San Diego

Legal Aid Society of San Diego attorneys represented a divorced wife who was being sued for medical services rendered to her ex-husband after they were separated, but before the divorce was final. The subsequent final dissolution of marriage did not assign this debt to the ex-wife, our client. Thereafter, the hospital's debt collection company sued our client for over $30,000 for her ex-husband's medical services. The trial court ruled that our client was liable since separated spouses are responsible for each other's necessaries of life. We appealed the case and the appellate court ruled in favor of our client stating that since she was not assigned the debt in the subsequent dissolution order, she was not liable for the debt.
(See: Family Code sections 910-916).
CMRE Financial Services Inc. v. Parton (184 Cal. App. 4th 263)

The impact:

Our client is not liable for a debt that is over $30,000.

 

To the community: Clarification throughout the state on both the family law side and debt collection side as to liability after a divorce decree. This is making the debt collection companies change the way they perceive liability. This should protect from collection activity spouses who are not liable, or, (since collection activity would be illegal), create liability for such activity. For family practitioners this emphasizes the need to clearly establish the date of separation since it will control the characterization of, and thus liability for, debts incurred individually after that separation. Additionally, any divorce decree that does not assign a debt (either a community debt or a debt after separation) to a non-incurring spouse is protection against a creditor's subsequent liability claim against that spouse for the debt.

Examples: Husband buys a car during marriage without wife's signature - the car debt is not assigned to wife in the dissolution. Thereafter, wife is not liable under "community debt" theory. Husband goes to emergency room for a medical condition. Wife does not sign for the debt or admittance. Debt assigned to husband or simply not assigned during dissolution. Thereafter, wife cannot be collected upon.

NOTE: Many collection agencies violate this rule, and it is fertile ground for statutory debt collection tort claims.
 

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