In California, the community property is liable for debts incurred during separation. However, proceeds from these debts may be characterized as separate property of the acquiring spouse. Thus, the community, even though suffering the risks of liability, is disallowed the benefits of such risks. This Comment argues that the current lender's intent analysis applied upon credit acquisition should be discontinued in favor of the exposure analysis. Further, the Comment argues that community property debt liability during separation arises only if the debt is related to the community which occurs a) if the liability benefits the community; or b) if the loan was obtained in exchange for community property.
Curtis Barnes Jr.,
California's Characterization of Credit Acquisitions during the Post-Separation Period,
San Diego L. Rev.
Available at: https://digital.sandiego.edu/sdlr/vol25/iss5/6