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How Debt Is Divided in a Florida Divorce
Introduction
Dividing assets is one of the most important aspects of a divorce, but just as important is the division of debt. Many couples accumulate shared financial obligations during their marriage, such as mortgages, credit card debt, car loans, and medical bills. In Florida, courts apply the principle of equitable distribution to both assets and liabilities, meaning that debts must be divided fairly—but not necessarily equally.
This guide explains how debt is handled in a Florida divorce, what factors influence debt division, and how spouses can protect themselves from unfair financial burdens.
How Florida’s Equitable Distribution Law Applies to Debt
Florida law requires that marital debts be divided fairly between spouses. However, equitable distribution does not always mean a 50-50 split. Instead, courts consider various factors to determine how debt should be divided.
To understand how debt is allocated, it is important to distinguish between marital and non-marital debt:
- Marital debt – Any debt incurred during the marriage, regardless of whose name is on the account, is typically considered a shared responsibility.
- Non-marital debt – Debts that existed before the marriage or were acquired solely by one spouse (such as a student loan taken out before the marriage) generally remain the responsibility of that spouse.
Even when a debt is in only one spouse’s name, it may still be classified as marital debt if it was used for joint purposes.
Types of Debt That Must Be Divided in Divorce
Florida courts consider various types of marital debt, including:
- Mortgages and home equity loans – If one spouse keeps the marital home, they may be required to refinance the mortgage in their name or compensate the other spouse for their share of equity.
- Credit card debt – If the debt was accumulated during the marriage, it is typically divided between both spouses, even if only one person’s name is on the account.
- Car loans – The spouse who keeps the vehicle is usually responsible for making payments, but they may need to compensate the other spouse if the car has equity.
- Medical debt – Medical bills incurred during the marriage are generally considered joint debt, regardless of which spouse received the treatment.
- Student loans – Loans taken out before marriage are typically considered separate debt, while loans acquired during the marriage may be subject to division depending on whether both spouses benefited from the education.
- Business debt – If a business was owned jointly or operated using marital funds, any associated debt may be divided between both spouses.
Proper classification of each debt is crucial in ensuring a fair division.
Factors That Influence Debt Division in a Florida Divorce
Courts take several factors into account when dividing marital debt, including:
- Each spouse’s income and financial stability – A spouse with significantly higher income may be assigned a larger portion of the debt.
- Who benefited from the debt – If one spouse primarily benefited from a particular debt, they may be required to take on more responsibility for it.
- The reason for the debt – Courts may consider whether the debt was incurred for household expenses, family needs, or personal spending.
- Whether either spouse wasted marital funds – If one spouse recklessly accumulated debt through gambling, luxury spending, or affairs, the court may assign more of that debt to them.
- Existing prenuptial or postnuptial agreements – If the couple has a legally binding agreement that outlines how debts should be divided, the court will typically enforce it.
Each case is unique, and courts aim to create a fair financial outcome for both spouses.
How to Protect Yourself from Unfair Debt Allocation
If you are going through a divorce and want to ensure that debt is divided fairly, consider the following steps:
- Gather financial records – Obtain statements for all credit cards, loans, and joint accounts to understand what debts exist.
- Close joint accounts when possible – This can prevent further debt accumulation while the divorce is pending.
- Negotiate debt division in a settlement – If both spouses agree on how to divide debt, they can avoid letting a judge decide.
- Monitor credit reports – Keep track of your credit to ensure that debts assigned to your spouse are not affecting your financial future.
- Consider refinancing debts – If one spouse takes responsibility for a debt, refinancing in their name alone can prevent future liability issues.
A fair debt division strategy can help both spouses move forward financially after divorce.
What Happens If a Spouse Fails to Pay an Assigned Debt?
Even if a divorce decree assigns a debt to one spouse, creditors may still hold both parties responsible if the debt was originally in both names. This can create problems if:
- One spouse fails to make payments, leading to collections or credit score damage for both parties.
- A creditor sues the spouse who was originally on the loan, regardless of the divorce settlement.
To avoid these risks, it is best to pay off joint debts before finalizing the divorce or ensure that debts are refinanced or transferred solely into the responsible spouse’s name.
How a Family Law Attorney Can Help
A family law attorney can assist with:
- Identifying which debts are marital or non-marital.
- Negotiating a fair division of debt in a divorce settlement.
- Protecting a spouse from liability for debts incurred by the other party.
- Ensuring that credit and financial interests are safeguarded during and after the divorce.
At Bonderud Law, we help clients navigate the complexities of dividing debt in Florida divorces. If you need assistance with financial matters in your divorce, contact us today for a free consultation.
Conclusion
Dividing debt in a Florida divorce requires careful analysis to ensure that both spouses receive a fair financial outcome. Courts consider factors such as income, financial responsibility, and the purpose of the debt when making decisions. Proper planning, financial awareness, and legal guidance can help divorcing spouses avoid being saddled with unfair financial burdens.
If you are going through a divorce and need help determining how debt should be divided, consulting with an experienced family law attorney can provide the clarity and protection you need.