divorce; creditors
HB2464 would require superior courts to inform divorcing or separating couples of their joint responsibility to creditors regarding debts accumulated during marriage. It would require creditors, if requested by either spouse, to send account statements and other notices to both parties in an Arizona divorce.
· In all actions for divorce or separation, the court shall require a notice to be provided to both spouses stating that although the court may assign responsibility for certain community debts to one spouse or the other, the court order is binding on the spouses only. Spouses are not necessarily relieved of responsibility for community debts because creditors are not parties to the court case, thus not bound by court orders or mutual agreements. The notice recommends that the spouses contact their creditors to discuss their debts and the possible effects of their court case on the debts and clarifies they may request the court to order a credit reporting agency to release the other spouse’s credit report.
· On the written request of either spouse, the court, except for good cause, shall order a credit reporting agency to release the credit report of the spouse of the requesting party.
· On the request of either party, except for good cause, the court shall require the parties to submit a debt distribution plan that states how joint creditors will be paid, whether any agreements have been entered into between the parties as to responsibility to pay for joint debts, and whether the parties have entered into agreements with creditors through which a joint debt will be the sole responsibility of one party.
· The court shall provide a form which may be used to verify agreements with creditors.
· The court, except for good cause, shall order the parties to submit the debt distribution plan to a title company to verify the existence of any agreements with creditors that make a joint debt the sole responsibility of one party.
· Within 30 days of a written request from a requesting spouse, a creditor must provide information on the balance and account status of any debts for which the requesting spouse may be liable to the creditor.
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44th Legislature Analyst Initials _______
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Second Regular Session January 20, 2000
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