Who is responsible for debts during a divorce?

On Behalf of | Apr 19, 2018 | high asset divorce

During a marriage, much of what is acquired is considered the joint property of the spouses. Throughout Florida, married couples acquire artwork, residences, cars, jewelry, business assets and a host of other tangible and intangible items that collectively make up their combined wealth. In some cases, couples may also acquire a different kind of financial obligation that they must manage: debt.

Debt accrued during a marriage can be individual or joint. It all depends upon how it was taken on. For example, a debt that is accrued on a credit card shared by both partners to a marriage will generally be considered a debt owned by both of the partners. This is true even if one of the partners did more spending on the credit device than the other.

However, if a person has a credit card in only their name or takes out a loan that their spouse does not sign for then that debt may only be the responsibility of the party who took it on. It is possible for a party to a divorce to avoid liability on these types of debts, but it is important that individual readers discuss their individual debt liability with their family law attorneys.

Debts, like assets, must be managed during divorces. Understanding where debts came from and how assets may be used to address them is an important step in working through the property negotiations of a high asset divorce. Not all law firms handle high asset divorces so it can be useful for individuals with significant assets and debts to speak with legal representatives who can competently advise them on how their wealth will be affected by divorce.