How is Credit Card Debt Divided in a Divorce in Florida?

Many people have significant credit card debt. According to the most recent data cited by CNBC (March 2024), the average American adult has just over $6,000 of credit card debt. For those aged 35 to 64—the most common range for divorce—average credit card debt is in excess of $9,000. Of course, it is also not uncommon for people to have tens of thousands in consumer debt.

This raises an important question: How is credit card debt divided in a divorce in Florida? The short answer is that personal debt—including credit card debt—is split under the state’s equitable distribution law. Within this article, our Largo divorce lawyer provides a more detailed overview of the credit card debt and divorce in Florida.

Florida is an Equitable Distribution State—Including for Marital Debt 

Under Florida law (Florida Statutes § 61.075), property division is subject to the equitable distribution standard. Notably, the state’s equitable distribution principles for divorce applies to a couple’s shared debts as well—including credit card debt. In effect, the law holds that credit card debt will be split in a “fair” manner. Here is an overview:

• Separate Credit Card Debt: Separate credit card refers to any credit card debt that was accumulated by either spouse before the marriage. In Florida, debts incurred before marriage are considered separate property and are usually the sole responsibility of the individual who incurred them. If a spouse enters the marriage with existing credit card debt, they generally leave the marriage with that debt if it has not been resolved.
• Marital Credit Card Debt: On other hand, any credit card debt acquired during the marriage is deemed marital debt. This includes charges made for family expenses or for the benefit of the household. During a divorce, such debt is subject to equitable distribution. The court will consider various factors—such as each spouse’s economic circumstances, contributions to the marriage, and the debts assigned to each party.

To be clear, credit card debt can still be deemed marital credit card debt even if both spouses’ names are not on the credit card account. For example, if one spouse opens a personal credit card on their own, that debt can still be counted as a marital obligation.

 Factors that Could Justify an Unequal Division of Credit Card Debt 

In Florida, a couple’s marital credit card debt can be split in a 50/50 manner. Indeed, that is a relatively common result. However, that is not guaranteed as a matter of law. Here are some factors that could justify an unequal division of credit card debt in a divorce:

• Economic Disparity: If one spouse has significantly higher income or earning potential, they may be assigned a larger portion of the debt.
• Benefit Derived: If one spouse primarily benefited from the expenditures leading to the debt, they might be responsible for a greater share.
• Fault in Marital Breakdown: In some cases, if one spouse’s actions led to the dissolution of the marriage, they could be assigned more debt.

 Get Help From a Divorce Lawyer in Largo, Florida Today

At the Law Office of Gale H. Moore P.A., our Largo divorce attorney is a solutions-forward advocate for our clients. Have specific questions about splitting complex property in a divorce? We are available to help. Contact our team now for your completely confidential, no obligation consultation. From our Largo office, we provide family law services throughout all of Pinellas County.

Source:

cnbc.com/2024/03/27/how-much-credit-card-debt-americans-have-by-age-.html