Compassionate Family Law And Divorce Guidance

How is debt split in a divorce?

On Behalf of | Nov 21, 2022 | Divorce

When couples divorce, the courts divide any assets they share. However, debts can also be part of the property separation process.

People who are seeking a divorce in Florida should learn what happens to debts accrued during the marriage.

Dividing marital liabilities

In Florida divorce cases, the courts typically aim to split shared marital assets and debts equitably between both spouses. Debts that occurred during a marriage and benefitted both spouses are joint marital liabilities. Courts often divide these liabilities such that the higher-income spouse must pay a greater share.

Premarital debts, including student loans and credit card debts accrued before marriage, are generally not part of a divorce settlement. Furthermore, nonmarital debts are not shared liabilities. These are debts in one spouse’s name only, providing no benefit for the family overall. In some cases, it can be difficult to prove that debts incurred during marriage are not joint liabilities.

Managing debt after divorce

There are many types of debt that can be part of a divorce settlement. For example, many couples share mortgages on their homes while married. Car loans, credit card debts and student loans are also common marital debts. After divorce, both parties are responsible for paying their share of the debt. Unfortunately, this can cause difficulties if one spouse fails to make payments on time. Creditors can seek payments from either party regardless of the terms of the divorce settlement.

Separating debts during divorce can be a complex process. The division of liability depends on the nature of the debts and the income of each spouse.

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