We are Getting Divorced in Florida—What Happens to Our Debt?
Are you preparing for a divorce in Florida? Similar to many other couples, you may have a debt that you need to divide in order to finalize your separation. Splitting up debt can be a challenging, sometimes even contentious issue. Here, our Boca Raton equitable distribution lawyer explains the key points to know about the law for splitting up debt in a divorce in Florida.
Many Couples Have to Divide Debt as Part of their Divorce
Many Florida couples—including most high net worth couples—have debt. While most people who get divorced are focused on the division of assets (home, cars, retirement accounts, etc), it is also important to recognize that debt division can have significant financial implications for your future.
Common types of debt that need to be divided as part of a divorce in Florida include:
- Credit card debt;
- Personal loans;
- Medical bills;
- Back taxes;
- Mortgages;
- Vehicle loans;
- Student loans; and
- Business loans.
Marital Debt is Subject to Equitable Distribution in Florida
Florida is an equitable distribution state for property division in a divorce. Under Florida Statute 61.075, liabilities (debts) are also subject to the equitable distribution standard. The law does not call for an equal split of marital property and marital debts. Instead, the debts will be split up in a manner that is fair based on the specific circumstances of each party. Courts in Florida can consider a wide range of factors—the length of the marriage to the financial situation of each spouse.
Big Question: Is Debt Separate or Marital?
One of the first questions that must be answered to split debt in a divorce is to decide whether the debt is marital or separate. Marital debt typically refers to any financial obligations incurred during the marriage—regardless of which spouse’s name is on the account. Marital debt is subject to equitable distribution. On the other hand, separate debt refers to obligations taken on by a spouse before the marriage or after the separation. It remains the sole responsibility of one spouse.
Debt Will Be Split in a Fair Manner
Each spouse remains responsible for their own “separate” debt. For the marital debt, that will be divided in an equitable manner. The term “equitable” in Florida divorces means that the division of debt is based on fairness, considering the specific circumstances of each spouse. A 50/50 split of the marital debt is a possible outcome—but it is by no means required by law. In some cases, the court may assign more debt to the spouse with a higher income or greater ability to repay—even if both parties incurred the debt equally. A Florida divorce attorney can help you navigate the process.
Consult With Our Florida Divorce Lawyer Today
At Williams & Varsegi, LLC, our Florida divorce attorney has the skills and experience to handle all types of property division issues. Have any questions about splitting up debt in a divorce? We are more than ready to help. Contact our family team today for a fully confidential initial consultation. With an office in Boca Raton, we provide divorce representation throughout South Florida.
Source:
leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html
