Kinkade v. Kinkade (In re Kinkade)

Summarized by Gregory Hesse , Hunton Andrews Kurth LLP
13 years 3 weeks ago

Citation:

No. 12-30525 (5th Cir. Feb. 6, 2013)

Tag(s):

Ruling:

Debts incurred by debtor to former spouse for money loaned to debtor both before and during marriage were non-dischargeable pursuant to 11 U.S.C. Sec. 523(a)(15) because the divorse decree stated that the debtor was obligated to the former spouse for both debts.

Procedural context:

Appeal from summary judgment in the non-dischargeability adversary proceeding.

Facts:

Irene Porter ("Porter") is the former spouse of the debtor, Kenneth Kinkade ("Kinkade"). Porter loaned Kincade two sums of money to support Kinkade's seperate business: $23,675.50 before the parties marriage and $20,000 during the marriage. Both amounts came from Porter's seperate property. Porter and Kinkade divorced in 2006. In the course of the divorce proceedings, the state court entered a judgment that Kinkade owed Porter the $43,675.50 that Porter had loaned to Kinkade. Kinkade filed a Chapter 7 bankruptcy petition in 2011. Porter timely initiated an adversary proceeding to contest the dischargeability of the debt. On a motion for summary judgement, the bankruptcy court held that since the divorce court entered a judgment in favor of porter on the full amount of the debt, the debt was non-dischargeable pursuant to Sec. 523(a)(15) regardless of whether the money was loaned prior to or during the marriage. The district court and the court of appeals affirmed.

Judge(s):

Reavley, Prado and Elrod.

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