California Family Code § 916: Liability of Spouses for Debts After Property Division

Plain-Language Summary

After a divorce or legal separation, each person generally remains responsible for the debts they incurred. Family Code § 916(a)(1) confirms that a spouse’s separate property (and the share they received in the divorce) is liable for debts that person incurred before or during the marriage. By contrast, § 916(a)(2) makes clear that one spouse’s assets are not responsible for the other spouse’s debts unless those debts were specifically assigned to them in the divorce settlement. In practical terms, if a debt is not assigned to you by the divorce decree, creditors generally cannot touch your property or income to pay that debt.

If, however, the divorce agreement does assign a debt to you (for example, your ex agreed you would pay a joint credit card), then you must honor that assignment. Section 916(a)(3) reflects that rule: the spouse who took responsibility for the debt remains personally liable for it. Additionally, § 916(b) protects the paying spouse: if you pay a debt that your ex was supposed to pay, you can recover the amount you paid (with legal interest and attorney fees) from your ex.

Real-World Examples

Suppose John and Jane divorce. John had a car loan he took out during the marriage, and Jane’s name was never on that loan. The divorce decree assigns John’s car to John and does not assign any of John’s debts to Jane. Later, John stops paying the loan. Under §916(a)(2), Jane’s house or savings (her separate property) cannot be seized to pay John’s loan, because the debt was not assigned to her.
In another divorce, the decree specifies that Jane will pay John’s $20,000 student loan. If Jane ends up paying that loan out of her own funds after the divorce, §916(b) allows her to seek reimbursement from John for that payment (with interest). In other words, Jane can make John repay her for the money she spent on his behalf.

Published Case Law on § 916

Bijan Boutiques, LLC v. Isong (2024) 104 Cal.App.5th 132 – In this recent case, the Fourth District Court of Appeal held that after a contested property division, neither spouse nor the property awarded to them can be held liable for debts of the other spouse. The court explained that “[b]ecause we conclude that Family Code section 916 precludes [the creditor] from seeking to satisfy its judgment … out of the property awarded to [the wife] in the marital dissolution action,” the creditor could not enforce a judgment against the wife’s house (the divorce had assigned the debt to the husband).
C.M.R.E. Financial Services, Inc. v. Parton (2010) 184 Cal.App.4th 263 – In this case involving post-separation medical bills, the Court of Appeal reversed a judgment that had held the wife liable for her husband’s hospital debt. The court noted that the divorce judgment made the husband solely responsible for those bills, and under §916(a)(2) the wife could not be forced to pay them. In short, §916(a)(2) “relieves [the] non-debtor spouse of liability for [the] other spouse’s debt not assigned to him or her in the divorce judgment”.

Full Text of California Family Code § 916

(a) Notwithstanding any other provision of this chapter, after division of community and quasi-community property pursuant to Division 7 (commencing with Section 2500):

(1) The separate property owned by a married person at the time of the division and the property received by the person in the division is liable for a debt incurred by the person before or during marriage and the person is personally liable for the debt, whether or not the debt was assigned for payment by the person’s spouse in the division.

(2) The separate property owned by a married person at the time of the division and the property received by the person in the division is not liable for a debt incurred by the person’s spouse before or during marriage, and the person is not personally liable for the debt, unless the debt was assigned for payment by the person in the division of the property. Nothing in this paragraph affects the liability of property for the satisfaction of a lien on the property.

(3) The separate property owned by a married person at the time of the division and the property received by the person in the division is liable for a debt incurred by the person’s spouse before or during marriage, and the person is personally liable for the debt, if the debt was assigned for payment by the person in the division of the property. If a money judgment for the debt is entered after the division, the property is not subject to enforcement of the judgment and the judgment may not be enforced against the married person, unless the person is made a party to the judgment for the purpose of this paragraph.

(b) If property of a married person is applied to the satisfaction of a money judgment pursuant to subdivision (a) for a debt incurred by the person that is assigned for payment by the person’s spouse, the person has a right of reimbursement from the person’s spouse to the extent of the property applied, with interest at the legal rate, and may recover reasonable attorney’s fees incurred in enforcing the right of reimbursement.

This content is provided for general informational purposes only and is not legal advice. Laws and their interpretations can change, and how the law applies to your specific situation may vary. For advice regarding your own circumstances, consult a qualified attorney.