When people think of divorce, their minds often turn to how the house, the bank accounts, and the retirement plans will be divided. But equally important—and often more contentious—is the division of debt. In Florida, the same equitable distribution principles that apply to assets also apply to liabilities. That means credit card balances, mortgages, car loans, and other financial obligations are carefully evaluated and divided as part of the divorce process.
Understanding how debt is allocated is essential for anyone facing divorce. Who is responsible for the marital credit cards? What happens to a personal loan one spouse took out during the marriage? How do courts divide student loans, medical debt, or a jointly titled car loan when one party drove the car and the other paid the bills?
As a Tampa divorce lawyer, I work with clients every day to untangle these financial questions. In this post, I’ll walk you through how Florida’s equitable distribution laws impact debt division, what factors courts consider, how to protect yourself from debt you didn’t create, and what legal tools are available to ensure fairness.
If you’re divorcing in Tampa and are concerned about how debt will be handled, this guide will help you understand your rights, your responsibilities, and how to safeguard your financial future.
The Concept of Equitable Distribution in Florida
Florida follows the principle of equitable distribution, which means marital assets and liabilities are divided in a manner that is fair—not necessarily equal. While a 50/50 split is a common starting point, the court has broad discretion to make adjustments based on a variety of factors.
This principle applies to both assets and debts. The court will first determine whether the debt is marital or non-marital. Then, if it is marital, it will assign responsibility in a way that reflects each party’s circumstances.
As a Tampa divorce lawyer, I often explain to clients that the goal isn’t mathematical equality—it’s practical fairness. In some cases, one spouse may walk away with more debt if they have a higher earning capacity or if they benefited more from the borrowed funds.
Marital vs. Non-Marital Debt
The first step in dividing debt is classifying it. Florida law generally considers debt to be marital if it was incurred during the marriage, regardless of which spouse’s name is on the account. Debt that was incurred before the marriage, or after the filing date of the divorce petition, is typically considered non-marital.
Examples of marital debt:
- Joint credit card balances
- Mortgages on the marital home
- Car loans taken out during the marriage
- Medical bills incurred for family healthcare
- Business loans for a jointly owned business
Examples of non-marital debt:
- Student loans incurred before marriage
- Credit card debt on accounts opened before the marriage
- Personal loans taken out after separation
A Tampa divorce lawyer can help you gather documentation and financial records to clearly establish the timeline and use of each debt. Proper classification is critical—because once something is deemed non-marital, it usually remains with the spouse who incurred it.
How Courts Evaluate Marital Debt
Once a debt is classified as marital, the court looks at various factors to determine who should be responsible for paying it. These factors include:
- The income and earning capacity of each spouse
- Each spouse’s contributions to the marriage (financial and non-financial)
- Who benefited from the debt
- Whether one spouse recklessly or fraudulently incurred debt
- The overall distribution of assets
Courts aim for balance. If one spouse receives a greater share of the assets, they may also be assigned more of the debt. If one party used a credit card for personal vacations, luxury items, or gambling, the court may assign that debt solely to them.
This is where having an experienced Tampa divorce lawyer makes a big difference. Your attorney can help you present a clear, fact-based case showing how each debt was used—and why it should (or should not) be assigned to you.
Joint Accounts and Liability After Divorce
A common misconception is that the divorce decree fully protects you from joint debts. This is not always true. While the court may assign a debt to your ex-spouse, creditors are not bound by divorce judgments. If your name is on the account, the creditor can still pursue you if your ex doesn’t pay.
That’s why Tampa divorce lawyers often advise clients to:
- Pay off joint accounts before finalizing the divorce
- Refinance joint loans into individual names
- Close shared credit cards
- Include indemnification clauses in the settlement
These steps provide practical protection and reduce the risk of post-divorce financial entanglement.
What Happens with Secured vs. Unsecured Debt?
Another layer of complexity in divorce debt allocation is distinguishing between secured and unsecured debt.
- Secured debt is backed by collateral. Mortgages and car loans are common examples.
- Unsecured debt has no asset securing it. Most credit cards and medical bills fall into this category.
In a divorce, secured debts are usually allocated to the spouse who retains the underlying asset. For example, if you keep the car, you’ll likely keep the loan. However, that’s not always a clean cut. If both spouses signed for the loan, the lender can still pursue either party—even if the divorce agreement says otherwise.
A Tampa divorce lawyer will help you negotiate refinances or asset transfers to ensure you’re not legally tied to something you no longer control.
Handling Business Debts
When one or both spouses own a business, things become more complex. Business debts incurred during the marriage can be classified as marital, even if only one spouse operated the business.
If the business is a marital asset and remains with one spouse, the corresponding debt may follow. But if both parties are entitled to a share of the business, the debt must be equitably apportioned. In some cases, business valuations must be performed to understand how debt influences the business’s value.
A Tampa divorce lawyer with experience in business division can work with forensic accountants to determine how best to divide both the business and its liabilities.
Debt Incurred in Bad Faith
Sometimes, one spouse may deliberately rack up debt in anticipation of divorce. This is referred to as wasteful dissipation or bad-faith debt. Courts can hold that spouse solely responsible for the debt if there’s evidence it was incurred recklessly or to intentionally burden the other spouse.
Examples include:
- Taking out large cash advances before separation
- Running up credit cards on luxury goods for a new partner
- Making large, unnecessary withdrawals from joint accounts
A Tampa divorce lawyer can help uncover these actions and present the evidence needed to shift responsibility away from the innocent spouse.
Student Loans: Shared or Separate?
Student loan debt is one of the most misunderstood areas of divorce finance. If the loan was taken out before marriage, it’s usually non-marital. But if incurred during the marriage, the court looks at who benefited.
Did both spouses agree that one would earn a degree to improve household income? Was the money used solely for tuition or also to pay rent, food, and living expenses? These details matter.
In some cases, student loan debt may be treated as partially marital. A Tampa divorce lawyer can make the case for how the education benefited the household and argue for an equitable division of the related debt.
Protecting Yourself Before, During, and After Divorce
If you’re still in the early stages of divorce, there are steps you can take now to minimize your exposure to debt:
- Obtain a full credit report and financial disclosures from both parties
- Freeze joint accounts or close shared credit cards
- Don’t co-sign new loans or financial obligations
- Keep records of all transactions and debt-related correspondence
After divorce, monitor your credit and keep tabs on any obligations that remained in both names. If your ex-spouse defaults, it could still affect your score or lead to collection efforts.
A Tampa divorce lawyer will not only help negotiate fair terms but also draft agreements with protective language, including indemnification and hold harmless clauses, to shield you from post-divorce debt problems.
Enforcing Debt Allocation After Divorce
Even after the divorce is finalized, problems can arise when one party fails to follow through with their debt obligations. If your ex-spouse doesn’t make the payments they agreed to, you may still be liable—especially if your name is still on the account.
Legal remedies include:
- Filing a motion for enforcement in family court
- Seeking reimbursement for any payments you were forced to make
- Pursuing contempt proceedings if the nonpayment violates the court order
Your Tampa divorce lawyer can help you enforce the settlement and protect your credit standing.
Creative Solutions for Dividing Debt
Sometimes the best solution isn’t a straight split. Creative debt solutions may include:
- One party taking more debt in exchange for more assets
- A lump-sum payoff of joint credit cards before finalizing the divorce
- Selling a joint asset (like a car or home) to eliminate the associated loan
Your Tampa divorce lawyer can help you explore nontraditional solutions that work for your unique situation.
Real-Life Examples
Case Study 1: Equitable Split with Unequal Incomes
Laura and Tom had $30,000 in marital credit card debt. Tom earned double Laura’s income. Their Tampa divorce lawyer proposed a 60/40 split, with Tom assuming $18,000 and Laura taking $12,000. The court agreed, citing income disparity.
Case Study 2: Business Loan Gone Awry
Sandra and Mark co-owned a landscaping company. During the marriage, they took out a $50,000 business loan. After the divorce, Mark kept the business, and Sandra’s lawyer successfully argued that Mark should retain full responsibility for the loan tied to a business she no longer benefited from.
Case Study 3: Bad Faith Debt Assignment
Brian filed for divorce after learning his spouse Max had taken out $20,000 in cash advances and spent it gambling. A forensic audit proved the debt was incurred post-separation and without Brian’s knowledge. The judge assigned the entire debt to Max.
FAQ
Q: Is debt divided 50/50 in a Florida divorce?
A: Not always. Florida uses equitable distribution, which means debt is divided fairly—not necessarily equally.
Q: Am I responsible for my spouse’s credit card debt?
A: If the debt was incurred during the marriage, it may be considered marital—even if the card is in their name.
Q: Can my ex ruin my credit after divorce?
A: Yes, if your name is still on joint accounts. That’s why it’s critical to refinance or pay off shared debt and close joint accounts.
Q: What if my spouse won’t pay the debt assigned to them?
A: You can file for enforcement or contempt. Courts can order compliance and award you reimbursement or legal fees.
Q: Are student loans marital debt?
A: It depends. Loans taken out during the marriage may be shared if they benefited both spouses or the household.
Q: Can I ask the court to assign all debt to my spouse?
A: Only in limited situations—like bad-faith spending, fraud, or significant income disparity. The court aims for fairness.
Q: Do I need to go to trial to divide debt?
A: Not necessarily. Many couples resolve debt issues in mediation or with help from a Tampa divorce lawyer before trial.
Q: What’s the difference between secured and unsecured debt in divorce?
A: Secured debt is tied to an asset (like a house or car). Unsecured debt (like credit cards) is divided based on usage, benefit, and ability to pay.
Q: Can I refinance a joint loan into my name after divorce?
A: Yes—and it’s highly recommended. This removes your ex from liability and gives you full control.
Q: Should I run a credit report during divorce?
A: Absolutely. It helps identify all outstanding obligations and protects you from surprises.
The Importance of Expert Legal Representation
Equitable distribution and debt allocation involve more than just numbers. They require legal interpretation, strategic negotiation, and precise documentation. Without expert guidance, you may agree to a settlement that’s unfair—or worse, unenforceable.
A Tampa divorce lawyer brings more than legal knowledge. They offer:
- Strategic insight into how judges tend to rule
- Negotiation skills to protect your interests
- Experience with complex assets like businesses, investments, and pensions
- Awareness of hidden liabilities or bad-faith behaviors
- Courtroom advocacy if your case goes to trial
The decisions you make now will impact your financial future for years. Choosing the right legal partner can make the difference between a burdensome outcome and a manageable, fair agreement.
Post-Divorce Financial Planning
After the divorce is finalized, it’s important to take proactive steps to protect your credit, rebuild financial independence, and monitor lingering obligations. Key steps include:
- Updating your credit report to remove joint accounts
- Notifying creditors of the divorce and submitting the final judgment
- Establishing new accounts in your name only
- Consulting a financial planner to budget for your new single-income household
A Tampa divorce lawyer can refer you to trusted financial professionals and assist with any necessary follow-up legal work, like QDROs or enforcement actions.
Peace of Mind Through Clarity
Debt may not be as emotionally charged as child custody or alimony, but it’s just as important. Financial stress is a leading cause of post-divorce conflict—and it can drag on for years if not handled correctly from the outset.
With clear agreements, thorough disclosures, and strategic legal advocacy, you can avoid unnecessary disputes, protect your credit, and move forward with peace of mind. Whether you’re dividing a mortgage, paying down credit card debt, or disentangling complex financial obligations, your Tampa divorce lawyer is your partner in creating a cleaner financial break.
Let The McKinney Law Group help you resolve your divorce with confidence—and without surprises.
Contact us today to start a strategic, informed, and debt-smart approach to your divorce in Tampa.
The McKinney Law Group: Strategic Divorce Planning for Long-Term Security in Tampa
At The McKinney Law Group, we believe divorce isn’t just about what happens now—it’s about securing your future. We work closely with Tampa clients to create divorce strategies that protect their finances, their families, and their peace of mind.
Our team helps with:
✔ Identifying and dividing marital vs. non-marital assets
✔ Preserving retirement accounts and investment portfolios
✔ Customizing alimony terms to reflect long-term needs
✔ Developing parenting agreements built for lasting co-parenting
✔ Adapting strategies for complex or high-conflict divorces
Plan wisely today for the stability you deserve tomorrow.
Call 813-428-3400 or email [email protected] to get started.