When most people think about property and asset division, they think about divvying up their finances and home, cars, things, etc. Most people don’t factor the division of debt into their divorce process or even realize that debt can be considered part of the marital community. In most divorce cases, it is divided between spouses based on a number of different factors.
It is ironic that debt is named one of the main causes of divorce and then is heavily implemented into the divorce process. If the debt was a factor in your divorce decision, filing and beginning the dissolution process will not make your debt problems just disappear.
Florida is an “equitable distribution” state, which means the debt acquired during the marriage is split fairly between the spouses.
There are a number of factors that impact how debt will be divided in your divorce, including:
- Whether there was equal contribution to the marriage
- The duration of the marriage
- The earning capacity of each spouse
- Whether there is a prenup or postnup involved
- Whether a spouse contributed to the career or education of the other spouse
Debt distribution is factored into property distribution because the value is noted and balanced. For example, one spouse might be responsible for more debt, but he or she may also receive more assets to balance the debt.
Debts that are divided include:
- Credit card debt
- Car loans
- School loans
- Car loans
- Business debt
- Other forms of loans
If any of this debt was acquired before the marriage, it is considered individual debt and not included in the debt division. Marital property and debt are divided amongst the spouses.
If you have questions about debt division in a divorce or about your personal divorce case, contact the Law Office of Russell S. Hershkowitz, L.L.C. today.