Dividing Debt in Florida Divorces

When it comes to equitable distribution, most people think about dividing assets, but marital debt is an equally important factor. In Florida, debts acquired during the marriage are subject to equitable distribution just like assets, even if only one spouse incurred the debt. Understanding how debts are evaluated and divided is crucial for individuals going through a divorce.

What Qualifies as Marital Debt?

Florida courts generally consider debts incurred during the marriage as marital debts, regardless of whose name appears on the account. This includes:

Credit Card Debt: Debts incurred to cover household expenses or shared purchases.
Mortgages: Even if the mortgage is in one spouse’s name, it may still be considered a marital liability if the property was used as the marital home.
Car Loans: Vehicles purchased during the marriage are typically marital property, and their associated loans are marital debts.
Business Debts: If a business is considered marital property, any loans or liabilities tied to it may also be divided.

Debts incurred before the marriage, or debts unrelated to the marital partnership (e.g., gambling or personal luxury spending), are typically considered non-marital debts.

Key Case: Romano v. Romano (2009)

In Romano v. Romano, 969 So. 2d 202 (Fla. 3d DCA 2009), the Florida court addressed the allocation of marital debt when only one spouse had incurred a significant credit card balance. The court emphasized that debts should be divided fairly, considering each party’s financial situation and contributions during the marriage.

Factors Considered by Courts

Florida courts evaluate several factors when dividing marital debt, including:

Purpose of the Debt: Debts incurred for the benefit of the marriage, such as home improvements or shared vacations, are typically divided.
Financial Circumstances: The court may allocate more debt to the spouse with greater earning potential or financial resources.
Misconduct: Debts incurred due to one spouse’s misconduct, such as hidden spending or reckless financial behavior, may be assigned to the responsible party.

Practical Advice

For individuals in Cocoa, Indian Harbor Beach, and Merritt Island, Florida, understanding how debt is divided can make a significant difference in your financial future. Here are some tips:

Identify All Debts: Make a comprehensive list of all outstanding debts, including credit cards, loans, and mortgages.
Gather Documentation: Collect statements, contracts, and records to show when and why the debts were incurred.
Work with a Professional: A family law attorney can help you advocate for a fair division of debt and protect your financial interests.

Related Resources

Learn about the division of marital property and debt on our Equitable Distribution page.
Explore Florida’s equitable distribution laws at Florida Statute §61.075.

If you’re facing a divorce and concerned about how debt will be divided, contact Rhoden Law Group at 321-549-3162. We’re here to help individuals throughout Brevard County achieve fair and equitable outcomes.