Property division is often one of the most contentious issues during divorce. Many who are going through a divorce are prepared to negotiate various assets, but it is also important to understand how debt factors into this process.
Florida is an equitable distribution state. This means the court would typically divide assets and liabilities acquired during the marriage fairly. This does not necessarily mean a 50/50 split.
Marital vs. non-marital debt
One of the first steps when dividing assets and debts is categorizing the asset or debt as marital or non-marital property. Marital debt is generally debt incurred during the marriage regardless of which spouse is named on the account. This can include mortgages, credit card debt, car loans, and medical bills.
Non-marital debt is typically debt a spouse incurred before the marriage. In some situations, the court may also consider debt acquired after the spouses separate as non-marital. This determination depends on the specific facts of your case.
Equitable distribution of debt
As noted above, Florida courts aim for a fair and equitable distribution of marital debt. The court considers numerous factors when determining the division. Questions the court may ask can include:
- How long were you married?
- What is each spouse’s economic circumstance?
- How did each spouse contribute to the marital estate?
- Did either spouse interrupt their career or education to help with children or to care for the marital home?
Navigating debt in a Florida divorce can be complicated. It is important to note that the divorce negotiations are often only one step in addressing debt. You may also need to take steps to address your credit and mitigate the risk of your ex impacting your future finances. Knowing how courts handle debt and learning how to deal with creditors and your credit score can help you navigate the process in a way that reduces the risk of surprises after you finalize the divorce.