How is Debt Divided During Divorce in Florida?
Divorce is always a difficult process and dividing marital assets and debts adds another layer of complexity. The division of debt is one of the most important, and contentious, parts of any divorce proceedings in the state. Understanding the process can ensure you are better prepared to enter into negotiations or court proceedings. One of our Tampa asset and debt attorneys can help you navigate the challenges of property division during divorce.
Marital vs. Separate Debt
Debt is a type of property and just like assets, it is categorized as either marital or separate property. Marital property refers to any assets or debts that were acquired during the marriage. It does not matter if only one spouse incurred the debt, or if it is only in their name. As long as the debt was acquired during the marriage, it is classified as marital property.
Debt that was acquired before the marriage, on the other hand, is classified as separate debt. This means only the spouse who incurred the debt will be responsible for repaying it.
Factors the Court Will Consider
When determining how to divide marital debt, the court will take many factors into consideration. These include:
- Which spouse benefited from the debt: The court will consider whether the debt was for the benefit of one spouse or if it was incurred to pay for household items or a family expense such as a mortgage. If both spouses benefited from the debt, the court will likely divide it under Florida’s equitable distribution laws. If only one spouse benefited from it, the court may be more likely to hold one spouse responsible for paying it.
- Misuse of funds: If one spouse fraudulently or irresponsibly racked up debt, the court will be much more likely to assign the debt to them. For example, if one spouse had a gambling problem and went into debt to fund it, they may be held solely responsible for paying it.
- Ability to repay: The court will also consider the financial situation of each spouse, as well as the earning potential, of each spouse after the divorce.
How to Protect Yourself
There are a few steps you can take to protect yourself from being held responsible for debt during divorce. These include:
- Collect all financial records: It is important to collect all financial documents when preparing for divorce. These can include credit card statements, loan agreements, and mortgage documents.
- Consider mediation: Many couples are ordered to try mediation before going to the courtroom. Resolving your issues during this process can save money, time, and stress.
- Work with your attorney: A divorce lawyer can ensure the division of debt in your case is fair and help protect your financial future.
Our Asset and Debt Attorneys in Tampa Can Help
Debt division during divorce is a complex process and the stakes are very high. At All Family Law Group, P.A., our Tampa asset and debt attorneys can help ensure you are not responsible for more debt than necessary and help you secure the assets that are most important to you. Call us today at 813-672-1900 or contact us online to schedule a free consultation and to learn more about how we can help. Se Habla Espanol.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/0061.html
