What Happens To Marital Debt During A Florida Divorce?
There is no simple answer to this question. Much can happen during a Florida divorce, and the courts respond differently to each case depending upon various factors that influence the case. In this article, the Tampa, FL divorce lawyers at Faulkner Law Group, PLLC will discuss how marital debt is treated during a Florida divorce.
The marital estate
The courts must first determine whether or not the debt belongs to one party or if it is a part of the marital estate. Generally speaking (there are some significant exceptions) any debt acquired during the marriage is considered a part of the marital estate and subject to equitable distribution (more on that below).
Equitable distribution of marital debts
In some states, the marital estate is divided in half upon divorce with no consideration as to the party’s relative situations once the estate is divided. These are known as community property states. Florida is not among them. Florida operates on a system known as equitable distribution. While the court may strive to get as close to a 50/50 split as possible, it will also consider the earning power of both spouses when dividing the marital estate. The key is not to impoverish one party once the estate has been divided. In some cases, this warrants an unequal division of the marital estate.
While the marital estate is most notably filled with income and assets, it also contains debts. To which party do these debts go? In the majority of cases, the debts will be divided 50/50 among the spouses if they have a somewhat similar earning power. If one party makes significantly more money than the other, then the court may see fit to assign the marital debt to their estate once the divorce is finalized.
Factors that the court considers when dividing marital debt
In most cases, the court will attempt to divide the marital debt equally. In other words, it would be split between the two spouses. However, the court may find some reason to deviate from this general practice, and it will do so by assessing certain factors related to the marriage. These include:
- The current and future earnings of both spouses
- The length of the marriage
- Did one spouse quit their career or stall their education to raise the children?
- The circumstances surrounding each debt
- Any other relevant financial considerations
- Did one spouse dissipate marital assets by gambling or having an affair?
Once responsibility for the debt is assigned, the other party’s name is removed from the debt account. Otherwise, there is a risk that the creditor will come after the non-liable spouse for the debt, which does happen sometimes.
Talk to a Tampa, FL Divorce Lawyer Today
Faulkner Law Group, PLLC represents the interests of Florida residents who are pursuing a divorce. Call our Tampa family lawyer today to schedule an appointment, and we can begin discussing key aspects of your divorce such as equitable distribution of the marital estate, alimony, child custody, and child support.
