Like many people in Idaho when considering a divorce, Debt is a major factor in the finalization of the marriage. Idaho Divorce Laws require that community debt be divided equally between the parties.
Community debt is any debt acquired by either spouse during the term of the marriage. It does not matter if the debt was acquired jointly or individually. It does not matter if one spouse did not know about the debt. It does not matter what the debt was for...gambling, credit cards, living expenses, vacations, etc. because it will be considered community debt and it will need to be divided equally between the spouses. Like everything in law, there are some exceptions to community debt, but for the most part all debt will be considered community debt.
Idaho Divorce Law regarding community debt and loans has been interpreted by the Idaho Court of Appeals as follows:
There is a rebuttable presumption that a debt incurred during marriage is a community debt. In the case of a loan, the nature of the loan proceeds determines the nature of the debt. If the proceeds of the loan are separate property, the debt is also separate. In determining the nature of the proceeds of a loan, examination must be made of the basis of the extension of the credit. The proceeds of loans made upon the security of a spouse's separate estate are separate, and those made upon the security of the community estate are community. This rule is based upon the fact that the estate providing the security is the primary source of repayment. However, the fact that one estate provides the security does not necessarily lead to a conclusion that this estate is also the primary source of repayment of the debt. If there exists between the spouses an actual, articulated intent that the obligation be separate or community in character, that intent shall control. (McAffee v. McAffee)
If you are considering and going through an Idaho Divorce, contact an Idaho Divorce Attorney is you have questions regarding community debt.
