What Happens with Medical Debt in Divorce?
In California, important details that help determine who pays for medical debt include the date when the debt was incurred, and whether that fell within the marriage before any date of separation.
Medical debt incurred by either of the divorcing spouses between the date of the marriage and the official date of separation will generally be considered community debt. Community debt, much like community property, is typically equally split by the parties. This means that regardless of who the debt was incurred by, it will be equally divided between the spouses.
The rationale for this is that California views a spouse’s health as a necessity of the marital relationship. In other words, keeping one spouse healthy benefits the marriage as a whole. Because of that, the debt taken on to pay for medical care is considered a shared responsibility. It is not about fault, it is about partnership.
When is Medical Debt Separate?
There are a few circumstances where medical debt might be characterized as a separate debt and not subject to equal community property division:
- Pre-Marital Debt: Debt that was accrued before the marriage took place. As stated above, this debt was not incurred during the marriage, so it is not seen as the other spouse’s responsibility.
- Post-Separation Debt: Because the date of separation marks the end of the marital relationship, debt incurred after that date is generally seen to not benefit the other spouse. It is, therefore, not seen as their responsibility.
However, exceptions can apply, particularly in emergency situations or when community funds are used. Your attorney can discuss the details of your case and how they may fit these circumstances with you.
How Medical Debt is Divided?
It usually makes sense to see medical debt as one piece of the whole community that needs to be divided. The medical bill itself will likely not be simply torn in half. Instead, it will likely be seen as part of the larger community to be divided by the spouses.
This means, for example, that one spouse may be assigned the entirety of the medical debt. However, this is offset by that same spouse also walking away with an additional asset that offsets the incurred debt.
Contact Cardwell Steigerwald Young, LLP
There are many questions and many potential solutions for those navigating a divorce and division of property. The San Francisco divorce attorneys at Cardwell Steigerwald Young LLP understand how to craft a divorce agreement that takes into account your goals and is tailored to your specific needs. Contact our office today to begin discussing your case with our team.
