Vaughn
Vaughn v. Vaughn (In re Vaughn)
Opinion
Lead Opinion
Tangeman, J.
*453 Philip Vaughn appeals from the trial court's postjudgment order concluding that his outstanding debt on a loan from a family partnership-in which his ex-wife, Charlene Yu Steele Vaughn, is a limited partner-was nondischargeable in bankruptcy.
*230 ( Code Civ. Proc., § 904.1, subd. (a)(2).) Philip 1 contends the court incorrectly determined that his debt was exempt from discharge pursuant to *454 section 523(a)(15) of title 11 of the United States Code. 2 We hold that when the nature of a debt is such that its discharge will directly and adversely impact the finances of the debtor's spouse or former spouse, it is nondischargeable in bankruptcy, even if it is not directly payable to the spouse. We therefore affirm.
FACTUAL AND PROCEDURAL HISTORY
In May 1995, Charlene's parents created CJPM Family Partnership, Ltd. Charlene's parents are the general partners of CJPM. They have "full, exclusive, and complete authority and discretion in the management and control of the business of the [p]artnership." Charlene, her parents, and her three siblings are limited partners of CJPM. No limited partner is liable for the "debts, liabilities, contracts, or any other obligations of the…