While you may or may not be familiar with the dividing up of assets in a divorce, many people do not remember that liabilities are divided up as well. In the broadest sense, this means that not only the property you acquired during a marriage is up for litigation, but the debts as well. To learn more about the difference between assets and liabilities in a divorce, and how these two financial areas may affect you, keep reading this blog, courtesy of our skilled divorce attorney at the Law Office of Russell S. Hershkowitz, L.L.C.
Assets & Liabilities: What’s the Difference?
When two individuals enter into a divorce where they agree to the terms, this is called an uncontested divorce. However, in contested divorce cases, both individuals are open to the equitable distribution of property under Florida state law. What this means, essentially, is that the court will determine which assets should go to which party. Florida is a common law property state, which basically means that each spouse is entitled to the property they acquired over the course of the marriage.
However, every married couple knows that you do not just acquire property in a marriage—you also acquire debt, or liability. Much like property from your marriage, debt is not something the judge splits down the middle either. This precedent can play an important part in divorce cases, given that if, for instance, one spouse goes into dept paying for the other one to go to school, the spouse who made those school payments will likely end up saddled with the liability. It does not matter if the other spouse reaped all the rewards of said debt, as long as it is in the other spouse’s name, they will probably be responsible for it.
It is worth noting, however, that a judge may look at larger financial patterns during the marriage when dividing up assets and liability. To wit, it could be argued that if one spouse owns a business in their name, but the other spouse oversaw all of said business’s day-to-day operations, then the latter spouse may be entitled to a piece of that business in a divorce. It could also be argued that if one spouse recklessly incurs debt or impedes the couple’s ability to pay off debt, then that spouse may be held liable to pay back a greater share of said debt following the couple’s divorce.
For All Your Divorce-Related Needs, We Are Here
At the Law Office of Russell S. Hershkowitz, L.L.C., our seasoned divorce lawyer is here to help you defend your rights in this difficult time. Whether you need assistance with property division, alimony, or modifications, we are backed with the 25+ years of experience needed to advocate tirelessly on your behalf. Call today to schedule a free consultation, and take the first steps towards a fair divorce today.