In Re Marriage of Clements

In this case we examine the discharge of a debt by the federal bankruptcy court when the bankrupt spouse was required to make payments on the discharged obligation as part of a property settlement agreement ordered by a state family law court. The precise question presented by this appeal is whether the court below erred in reducing the bankrupt spouse’s monthly support to reflect payments ultimately made on the discharged obligation by the nonbankrupt spouse who remained personally liable on the community debt. We conclude that no error was made.

William and Marlene Clements were married in 1955. Their marriage was dissolved by interlocutory decree on December 17, 1975. No appeal was taken from the interlocutory decree and a final judgment of dissolution was entered.

In the interlocutory judgment of dissolution, the trial judge made an equal division of community assets and community indebtedness. Among the community debts were obligations to C.I.T. Financial in the sum of $10,411 and Bank of America in the sum of $2,671. These were awarded to Marlene as her sole and separate obligations, and she was ordered to hold William free and harmless from any liabilities…