In Oregon, the legislature allows spouses to obtain "short form" summary divorces if they can agree upon a distribution of debts and assets without a court's participation. When spouses are unable to agree upon a property allocation between them, Oregon courts will divide marital property and debts between them. Marital debts are debts acquired during a marriage, and these debts include expenses incurred to pay for family expenses. Each spouse is jointly responsible for paying the entire marital debt.
Prenuptial Agreements
Written prenuptial agreements are legally valid in Oregon. A legally valid prenuptial agreement is one without fraud, duress and signed as part of an arms-length or fair negotiation. Oregon courts will uphold a prenuptial agreement dividing assets and debts before the spouses married if it contains all of the necessary legal elements for a validly executed contract. Prenuptial agreements between two domestic partners who entered into a Declaration of Domestic Partnership are also legally valid.
Equitable Distribution
As an equitable distribution state, Oregon judges follow the common law doctrine of equitable property distribution. Oregon law requires judges to divide marital property and debts equitably between divorcing spouses. However, separate property and separate debts are not divided between spouses. Each spouse is responsible for paying separate debt accumulated before the marriage.
Marital Debts
Under the legal theory of joint and several liability, credit card companies can sue each spouse individually or sue both spouses jointly for repayment. However, many spouses fail to understand the legal implications of obtaining sole credit card accounts and adding users.
Generally, although Oregon courts may require both spouses to equally payoff marital debts on individual accounts, creditors will seek repayment from the card's owner, and not from both spouses. In this case, the spouse who owns the credit card can seek repayment from the other spouse by filing a lawsuit against him compelling him to pay his share of the marital debt.
Limitations
According to Oregon law, judges may not divide a larger portion of marital credit debt to one spouse based on fault factors. Fault-based factors are those which led the parties to divorce. Judges may not base their decisions on evidence of adultery, cruelty or any other fault factors.
However, judges may base their property awards on extrinsic evidence unrelated to fault. For instance, if one spouse intentionally spent excessive money on luxury items, a judge in Oregon may require him to pay a larger portion of the marital debt if she believes he intentionally participated in waste. However, if the husband used his marital credit card to pay for necessary expenses, including food and shelter during the marriage or during separation, a judge may assign joint responsibility to both spouses for repaying the debt.
Considerations
Since state laws can frequently change, do not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your state.
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