Debt and Divorce

Debt can be crippling and it waits for nothing. Whether it’s credit cards, loans, or some other form, it must still be paid no matter what happens. Even as you’re making your way out of it, if you find that life interferes, you must still contend with the debt. Thus, it makes sense that debt could become an issue during a divorce. It is common, too, for a couple to have joint debts, such as those incurred when buying a house together. That debt might not be such a bad thing when two people are sharing the responsibility. However, when the marriage ends, it can become quite a complication.

Money is always an issue during divorce. Assets are evaluated and divided, property and alimony are awarded, and, of course, debts are assigned. Who will take on any debts acquired during the marriage is an important decision; it is not only significant during litigation, but the final decision will affect the party carrying the debts for the foreseeable future. Florida, like any state, has its own guidelines and laws for dealing with debts during divorce. It is important to have a qualified Florida attorney to help you through the process.

Debts are potentially a part of community property. How they’re handled depends upon the state in which you live. Some states are “community property states,” which means that all assets and debts are divided equally. Other states have equitable distribution.

Some debt is more difficult than others. A credit card, for example, can be procured by only one person. In that case, that person is responsible for that debt. However, joint credit cards might not be viewed that way, even if the debt is acquired by one person using the card. In that case, the debt might be divided between the two parties. However, it is possible that, if it can be proved that one person accrued the debt on the joint card, one person will be assigned a larger portion of the debt.

The courts do their best to be fair and equitable, but this means that, sometimes, one person may end up with more debts to pay than another. For example, if the couple purchased property together, and one person is awarded the property, then it stands to reason that person will have to assume the debts for the property. Or, if another asset was acquired together and one person is awarded more, then that person may be responsible for more debt if any is associated with the asset.

In order for these things to go as smoothly as possible, full financial disclosure is required. Both parties must provide any and all financial information. Take note of any document that you signed, or account on which your name appears in any way. This can take a lot of time and be tedious. It also helps if your spouse shares his or her information with you. If you’re concerned that your spouse is hiding information, the best thing to do is speak to your attorney about it. If you’re not careful and thorough, you could end up paying more in debts than you imagined.

Don’t try to negotiate a divorce on your own. Come to Miller Law. Our attorneys can handle your case at an affordable rate.