During a divorce, Florida law requires the fair and equitable division of all jointly-owned property and this law applies to debts, as well. However, dividing up debts can be complex, especially if some debts are owned individually and others jointly. The name on the debt does not always mean that person will be solely responsible for the payments, however, and it is important to discuss debt division with an experienced divorce attorney who understands the relevant law. The following is some brief information regarding the division of certain debts in divorce:

Student Loans

Student loans are often individual debts unless the spouses cosigned on the loans or the loans were acquired during the marriage. In such cases, the loans would be considered marital debt and you may be held responsible for sharing the payment unless you and your spouse can agree otherwise. However, even if you agree that your spouse will be responsible for the loans, your name will likely remain on the loans and any failure to repay could affect your credit.

Credit Card Debt  

Credit cards are generally in the name of one person only and the other spouse is generally made an authorized user. However, if the debt was incurred during the marriage, it will likely be considered marital debt regardless of whose name is on the account. One exception to this may occur if your spouse purposely racked up a significant amount of debt in anticipation of the divorce. In such cases, a court may determine that debt will be their responsibility.

Mortgage

If you and your spouse bought a home together, your mortgage will likely be the largest debt you have. In many cases, especially if you do not have children, you may decide to sell the house to eliminate the debt all at once. However, if your spouse decides to stay in the home, you will likely have your part of the debt bought out. If you stay in the home and you cannot afford to buy your spouse out of the mortgage, you may be able to come up with another way to make up for it, such as giving them a greater portion of your assets or other property.

Contact a Divorce Attorney in Boca Raton for Help

When you are facing divorce, you likely already have enough financial concerns without having to worry about paying your spouse’s debts. Experienced divorce attorney Alan R. Burton knows how to fight for your right to a fair division of debt in line with Florida property division laws. In addition, Mr. Burton will assist in ensuring all child or spousal support determinations are fair so that you can emerge from your divorce in the best financial situation possible. We offer free consultations, so please contact our office at 954-229-1660 for help today.

Joint Debts

Though your marriage does not affect your score, the non-payment of joint debts wil. If you have a mortgage, auto loans, or other credit accounts in both your and your spouse’s names, you and your spouse will have to agree how to continue paying these following separation. Your divorce decree should equitably divide your joint debts in accordance with Florida law, however, you may not be able to refinance certain debts to remove your name. This means that, if the court assigns certain joint debts to your ex-spouse and they fail to pay the debts, your score could be affected. While you may be able to dispute late payments by using your divorce decree or may be able to report the non-payment of debts to the court, this can be a complex process and may not necessarily raise your score.

Financial Difficulties

Too often, divorce can leave you with financial struggles. From the loss of your spouse’s income to legal costs and more, you may find it difficult to pay your debts. It is important to have an experienced divorce attorney on your side who can fight for adequate child and/or spousal support to preserve your financial well-being. However, even with such support, the transition from married to divorced can often take a toll on your credit if you are not careful. If needed, work with your attorney on ways to increase your income and decrease your living expenses to prevent credit issues.

Vindictive Acts By Your Spouse

Many married couples have access to one another’s accounts, including credit accounts. If your spouse is an authorized user on your accounts or even has your physical credit card, there may be the risk they decide to vindictively use your credit accounts without your knowledge. If you do not know you have a balance, you may miss payments. Furthermore, the debt may become too high for you to afford the minimum payment. During separation and divorce, always keep track of all of your credit accounts and regularly check your balances for accuracy, even if they are only in your name.

An Experienced Boca Raton Divorce Attorney Can Help You

A skilled divorce lawyer will understand the wide range of financial issues that divorce can cause, including an adverse impact on your credit score, and can provide valuable advice to help limit the issues your face. Please call the Boca Raton law office of Alan R. Burton today at 954-229-1660 for help with your situation.