How Are Debts Divided In A Florida Divorce?

Our attorneys often field questions from clients concerning the division of marital property and specifically, how debts get divided in a divorce. To understand the issue, you must understand the concept of the marital estate. The marital estate is created on the day of your marriage and it ends when you are served with divorce papers. In between, every asset you purchase, any income, and even accrued value of retirement accounts, is considered part of the marital estate. However, so are debts. Any debts incurred during the marriage are part of the marital estate. The marital estate is then divided during a divorce.

Further, Florida is considered an equitable distribution state. In some states, the marital estate is divided 50/50 between the spouses. That is not the case in Florida. Instead, the marital estate is divided in accordance with what is fair or equitable. So, not necessarily 50/50. This means that one partner could take on more of the marital debt than the other. In this article, we’ll discuss some of the important concepts you need to familiarize yourself with in order to accurately answer this question.

Marital debt versus separate debt 

The first question that needs to be answered is whether or not the debt belongs to the marital estate or an individual spouse. As stated earlier, all debts accrued during the marriage are considered part of the marital estate. It doesn’t matter whose name the credit card is in. If the debt was acquired before the marriage or after the date when the divorce was filed, then the debt belongs to the individual spouse and is not subject to equitable distribution.

Our attorneys are often asked questions about debts that are brought into the marriage. Debts brought into the marriage are not part of the marital estate. In most cases, you will not be responsible for your spouse’s student loans.

Factors considered when dividing debt 

When dividing debts equitably, the courts will consider the following factors:

• Contribution to the marriage – The court can consider each spouse’s financial or non-financial contribution to the marriage.

• Financial circumstances of each spouse – If one spouse has a higher earning power than the other spouse then the court can consider whether taking on the debt would be a financial hardship to the lower-earning spouse.

• Duration of the marriage – The length of the marriage can influence how debts are divided. Longer marriages typically result in a more equitable distribution of assets and liabilities.

• Child support – When children are involved, the courts can consider child support obligations and custody arrangements when dividing debts.

• Dissipation of marital assets – If one spouse had a gambling problem and wracked up considerable debt from marital resources, the courts can consider this when dividing marital debts.

Talk to an Orlando Family Law Attorney Today 

The Orlando divorce lawyers at Greater Orlando Family Law represent the interests of those who are pursuing a divorce in Florida. Call our office today to schedule an appointment and we can begin addressing your concerns right away.