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3 Ways to Avoid Debt in a Florida Divorce
When a married couple files for divorce in Florida, there will be an “equitable distribution” or the division of marital assets and liabilities. The legal requirements imposed upon the parties, and which must be followed by Florida courts, is set out in Florida Statute § 61.075. While the law strongly prefers and equal distribution liabilities in a divorce, there are exceptions to that general rule. There are three primary methods of avoiding responsibility for debt or other liabilities in a Florida divorce:
Prove that the Debt is Premarital
If a debt was incurred by one party before the marriage, it should be characterized as that party’s premarital debt and ordered to be solely their responsibility. This can be proven through credit card statements or other evidence to verify that the debt was incurred before the marriage.
Prove that the Debt was Incurred After the Date of Filing for Divorce
Debts incurred by a party after the date of filing are also nonmarital. Similar evidence, such as loan applications or other evidence, may be used to prove the debt was incurred after the date of filing for divorce. Obviously, this may not be the case if the parties jointly incur debt after the date of filing, or incur debt to secure a marital asset. Otherwise, when one of the parties incurs a debt after the date of filing a Florida divorce petition, the debt will generally be characterized as nonmarital and distributed to the party who incurred the debt as their sole responsibility.
Prove a Basis for an Unequal Distribution of Marital Liabilities
- As noted above, the law strongly favors an equal distribution of marital liabilities. However, unequal distributions are authorized under Florida Statute § 61.075 after consideration of various statutory factors, including:
- The contribution to the marriage by each spouse, including contributions to the care and education of the children and services as homemaker.
- The economic circumstances of the parties.
- The duration of the marriage.
- Any interruption of personal careers or educational opportunities of either party.
- The contribution of one spouse to the personal career or educational opportunity of the other spouse.
- The desirability of retaining any asset, including an interest in a business, corporation, or professional practice, intact and free from any claim or interference by the other party.
- The contribution of each spouse to the acquisition, enhancement, and production of income or the improvement of, or the incurring of liabilities to, both the marital assets and the nonmarital assets of the parties.
- The desirability of retaining the marital home as a residence, especially if minor children are involved.
- The intentional dissipation, waste, depletion, or destruction of marital assets after the filing of the dissolution petition or within 2 years prior to the filing of the petition.
- Any other factors necessary to do equity and justice between the parties.
A fourth avenue to avoid debt can exist if the parties previously executed a valid nuptial agreement and the agreement specifies that a given party will not be responsible for particular debts.
Consult with an experienced attorney at The Wheeler Firm to determine how a Florida court may divide debt in your specific situation. Call (850) 613-6923 or click HERE to schedule a consultation.
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Led by experienced family law attorney, Andrew D. Wheeler, The Wheeler Firm is committed to the protection and security of every client. We work to ease the stress of family law litigation, protect our client’s interests, and focus on proven results. With more than 15 years of experience litigating every form of family law case, and representing thousands of individuals and their families, we promise exceptional representation and advocacy. Call us at (850) 613-6923 for a consultation.
