The trial court properly held that husband’s debt owed to a family partnership of which wife is a limited partner was non-dischargeable in husband’s bankruptcy under 11 USC 523(1)(15), even though the debt was owed to the partnership, not wife directly. Under the cited statute, a debt is nondischargeable if the nature of the debt is such that its discharge would directly and adversely impact the finances of the debtor’s spouse or former spouse. Here, that was the case as wife’s partnership interest was charged with the debt, reducing her capital account with the partnership.
California Court of Appeal, Second District, Division 6 (Tangeman, J.); November 27, 2018; 29 Cal. App. 5th 451