Serving West Palm Beach, Boca Raton, Port St. Lucie and South Florida 561-658-1789

Division of Assets and Debts in a Divorce

Divorce is a stressful and exhausting event that encompasses a wide range of issues. Even when there are no children, there is still a lot that needs to be dealt with. One of the most contentious issues is dividing assets and debts.

Most people are concerned mainly with the assets. Who gets what? Not many people think about the debts in the marriage. They may think that they magically disappear, but they don’t. Credit card bills, loans, car payments, and mortgages all need to be addressed.

How assets and debts are split mainly depends on whether there is a prenuptial agreement in place and state laws. Florida is an equitable distribution state (as opposed to a community property state), meaning that assets and debts are split fairly. This could mean a 50/50 split, or it could be 60/40, 70/30, or some other split.

The division could also be influenced by factors such as:

Splitting the Assets

Keep in mind that only marital assets are split in a divorce. Any assets acquired during the marriage are the ones that must be divided. Any possessions that the parties owned prior to the marriage are typically not split in a divorce unless they have been commingled. This means that they have been used by both parties, such as a home or a vehicle.

One of the most common questions about assets is: Who gets the house? It either gets sold or one spouse buys out the other. If it gets sold, the parties split the proceeds. If one person wants the house, they can buy their share of the home and give the money to the other party.

Who is Responsible for the Debt?

Debt needs to be addressed as well, although not many people want to discuss it. Debt may be split 50/50, or it may be divided based on factors such as a prenuptial agreement and whose name was on the loan agreements. If both parties’ names were on the paperwork, then both would be held liable.

Marital and non-marital debt also comes into play. If you accumulated debt before marriage, that debt would be your responsibility alone. If the debt was accumulated after the marriage, then it is marital debt and the creditor may come after both parties for payment, even in a divorce.

Contact a West Palm Beach Divorce Attorney Today

Dealing with property division after a divorce can be frustrating. Everyone wants the assets but nobody wants the debts.

Count on Brian K. McMahon, P.A. for help with the process. He is a West Palm Beach divorce attorney who can help you understand divorce laws and protect your legal rights. To schedule a consultation, call (561) 658-1789 or fill out the online form. We serve the West Palm Beach, Boca Raton, Port St. Lucie, and South Florida areas.