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Senate Bill Report — SB 5863, Credit Reporting on Delinquent Accounts in a Divorce (as of January 19, 2024)

Summary

Senate Bill Report on SB 5863, as of January 19, 2024, an act relating to prohibiting credit reporting on delinquent accounts that are designated to a person in a divorce, sponsored by Senators Fortunato, Dozier and Padden, among others. Under the proposed substitute, credit reporting agencies are directed to list both parties as debtors if a debt is assigned to someone else after a dissolution proceeding upon notice from a creditor. The background says Washington courts have the authority to award debt to either party. The committee activity is dated 1/23/24, and a fiscal note was not requested.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Issuer
Congressional materials
Document type
Report
Date
2024-01-23
Case
2024 01 23 A31727 D265741 Bill Report 5863 Sba Bfgt 24

Cite this document

“Senate Bill Report — SB 5863, Credit Reporting on Delinquent Accounts in a Divorce (as of January 19, 2024).” Original at app.leg.wa.gov, dated 2024-01-23. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-01-23-2024-01-23-a31727-d265741-bill-report-5863-sba-bfgt-24/, SHA-256 c01c959a6ad19fa4720b84f3cc8607c2dbad647fac6c3be6c8e4180066615e47.

Full text

                             SENATE BILL REPORT
                                   SB 5863

                                       As of January 19, 2024

Title: An act relating to prohibiting credit reporting on delinquent accounts that are designated
     to a person in a divorce.

Brief Description: Prohibiting credit reporting on delinquent accounts that are designated to a
     person in a divorce.

Sponsors: Senators Fortunato, Dozier, Padden, Wilson, J. and Wilson, L..

Brief History:
     Committee Activity: Business, Financial Services, Gaming & Trade: 1/23/24.


                                      Brief Summary of Bill
           • Directs credit reporting agencies to list both parties as debtors if a debt is
             assigned to someone else after a divorce upon notice from a creditor.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES, GAMING & TRADE

     Staff: Clint McCarthy (786-7319)

     Background: Current law requires that the disposition of property in a divorce proceeding
     to be just and equitable after considering all relevant factors including, but not limited to:
         • the nature and extent of the community property;
         • the nature and extent of separate property;
         • the duration of the marriage or domestic partnership; and
         • the economic circumstances of each spouse at the time the division of property is to
            become effective.

     Before assets and liabilities are divided, each asset and debt is characterized as community
     or separate. Each asset has to be valued. This can be done by selling the item, having it
     appraised by an expert, or agreeing to a valuation. Finally, assets and debts are divided



     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

Senate Bill Report                               -1-                                            SB 5863
     between the two parties.

     Debts incurred during marriages are presumed to be community debts. Washington courts
     have the authority to award debt to either party regardless of whose name the debt is held in
     and whether it is considered separate or community debt.

     Summary of Bill: The bill as referred to committee not considered.

     Summary of Bill (Proposed Substitute): Directs credit reporting agencies to list both
     parties as debtors if a debt is assigned to someone else after a dissolution
     proceeding—divorce—upon notice from a creditor.

     Appropriation: None.

     Fiscal Note: Not requested.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: Ninety days after adjournment of session in which bill is passed.




Senate Bill Report                             -2-                                        SB 5863

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2024-01-23_a31727_d265741_bill-report-5863-sba-bfgt-24.pdf
Original
app.leg.wa.gov
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