It’s no secret that divorce heralds several financial realities that can be difficult to manage. But it’s important, as someone who is going through a divorce, to understand your rights and responsibilities when it comes to the divorce process.
During your marriage, you began accruing debts and assets to your marital estate. The marital estate is created on the date of your marriage and survives all the way until you divorce. During your marriage, any asset you purchase, any income that comes in, and any debt you incur is technically considered property of the marital estate. It is precisely this estate that must be divided during the equitable distribution phase of the divorce process.
In this article, the Tampa, FL divorce lawyers at Westchase Law, P.A. will discuss the equitable distribution of debts during the divorce process.
Understanding credit card debt in divorce
Credit card debt that was acquired while you were married is typically considered a part of the marital estate. That means that it’s subject to equitable distribution during the divorce process. It also means that both spouses are generally responsible for repaying the debt, regardless of which spouse incurred it.
During the Florida divorce process, marital assets and debts are divided in accordance with what is equitable (not necessarily equal). While there is a presumption under the law that debts will be divided equally, that presumption is rebuttable, meaning that a litigant can raise arguments that they should not incur the debt and it should be distributed to the other party’s estate.
Equitable distribution of credit card debt in Florida
In some states, the marital estate is divided in half regardless of any other factors. In Florida, there is a presumption that the marital estate should be divided in half, but that presumption can be challenged. The court will consider various factors when dividing property and debt. These factors include the duration of the marriage, each spouse’s financial circumstances, and each spouse’s contribution to the marriage. So, ultimately, the division of credit card debt can vary wildly from one case to the next.
Options for handling credit card debt in divorce
There are numerous ways that credit card debt can be addressed during a divorce. These include:
- Negotiated settlement – Spouses can negotiate a settlement agreement that details how credit card debt is to be divided. One spouse may assume responsibility for the debt on the basis of recovering more assets from the marital estate.
- Court decision – If the spouses are unable to resolve their issues in mediation, then the court will be forced to decide the matter on their behalf. The court will consider various factors such as both spouses’ abilities to pay, and the nature and amount of the debt.
- Joint repayment plan – Spouses may agree to continue making payments on joint credit cards until the debt is repaid in full.
Talk to a Tampa, FL Divorce Lawyer Today
Westchase Law, P.A. represents the interests of Tampa residents who are currently pursuing a divorce. Call our Tampa family lawyers today to schedule an appointment, and we can begin addressing any questions you may have.