How Are Debts Divided in a Florida Divorce?
One question that we’re often asked by our clients is: what happens to our marital debt during divorce? This is a complicated question that involves a number of moving parts. Our experienced family law attorneys are here to help you through the process of divorce and let you know what to expect from the proceedings. In this article, the Largo, FL divorce lawyers at Cairns Law, P.A. will discuss what happens to your marital debt during the process of divorce.
Understanding equitable distribution in Florida
During divorce, your marital estate is divided between the two parties’ individual estates. The process by which this happens is known as equitable distribution. In some states, the marital estate is divided in half regardless of any other factor. In Florida, that’s not the case. Instead, the marital estate is divided in accordance with what is equitable or fair. While there’s a presumption that the marital estate should be divided 50/50, the presumption is rebuttable, meaning the judge can see fit to distribute more of the marital estate to one party than the other. This usually occurs when there is a considerable difference between the earning powers of the two spouses.
Marital debt versus separate debt in Florida
A key concept that you have to understand to answer this question properly is the difference between the marital estate and separate property. Marital debts are those that were incurred during the marriage for the benefit of both spouses or the family. This can include mortgages, car loans, credit card debt, and other financial obligations. In Florida, the courts will default on dividing marital debt evenly between the spouses regardless of whose name appears on the debt.
It’s important to understand that both spouses are usually responsible for deaths that were incurred during the marriage regardless of whose name the debt is attached to. This means that even if only one spouse benefited from the debt, both spouses could be held liable for repaying the debt after the divorce is finalized.
Separate debts, on the other hand, are those that were incurred by one spouse before the marriage or after the date the divorce petition was filed. Such debts are always the responsibility of the spouse who incurred them. They remain on that spouse’s estate and are not subject to equitable distribution. That is unless they were commingled with marital assets and used for the benefit of the marriage.
Separate debts can become commingled when separate funds are used to pay for expenses or when separate property is mixed with marital property. In these cases, the separate debt may become part of the marital estate and subject to equitable distribution.
Talk to a Clearwater, FL family law attorney today
The Clearwater family lawyers at Cairns Law, P.A. represent the interests of divorcing couples while they are finalizing their divorce. Call our office today to schedule an appointment and we can begin discussing your goals and addressing your concerns right away.
