How are Debts Divided in a Florida Divorce?

One question we’re often asked by clients is: what will happen to our collective debts following a divorce? Our team of experienced family law attorneys is here to help you through the process of divorce and let you know what you can expect from the proceedings. In this article, the Tampa, FL divorce attorneys at Westchase Law, P.A. will discuss the intricacies of debt division during a Florida divorce.

Equitable distribution in Florida

Florida is an equitable distribution state when it comes to the division of assets and debts during marriage. That means that while there is a presumption that the marital estate should be divided 50/50, that presumption is rebuttable given the right kind of evidence. In other words, the judge could see fit to divide marital assets and debts in a way that favors one spouse over the other. This often happens when there is a considerable difference between the earning powers of one spouse and the other. In Florida, the marital estate is divided in a way that is fair, not necessarily even.

Marital versus separate debts 

Marital debts are those that were incurred during the marriage for the benefit of the family. These can include mortgages, car loans, credit card debt, and other financial obligations. In Florida, the default procedure is to divide 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 debts that were incurred during the marriage regardless of whose name is on the account. This means that even if only one spouse benefited from the debt, both spouses could be held liable for repayment during the divorce proceedings.

Separate debts, on the other hand, are those incurred by one spouse before the marriage or after the date the divorce petition was filed. These debts are always the responsibility of the spouse who incurred them. They remain with that spouse’s estate and are not subject to equitable distribution during the divorce process unless were commingled with marital assets and used for the benefit of the marriage.

Separate debts can be “commingled” when separate funds are used to pay for expenses or when separate property is mixed in with marital property. In these cases, the separate debt may become marital debt and subject to equitable distribution during the divorce.

Factors considered during debt division 

When dividing debts during divorce, the court will consider various factors outlined by statute to determine a fair distribution. The court can consider each spouse’s contribution to the marriage, both financially and non-financially, when deciding on debt division. The court may also consider the financial circumstances of both parties. If one spouse has a considerably higher earning power than the other, it may sway the court to divide the marital estate fairly as opposed to evenly. In addition, the length of the marriage can influence how debts are divided. Longer marriages typically result in a more equitable distribution of debts. Lastly, child custody arrangements can play a factor in how debts are divided including child support obligations.

Talk to a Tampa, FL Divorce Lawyer Today 

Westchase Law, P.A. represents the interests of Tampa residents who are pursuing a divorce. Call our Tampa family lawyers today to schedule an appointment, and we can begin discussing your next steps right away.