Collaborative Divorce, Debt, and Splitting Liabilities Fairly

Many couples are choosing collaborative divorce, because they recognize that divorce doesn’t have to be a battle. The collaborative process is a respectful, solutions-oriented way to end a marriage. Both parties work with their attorneys and other professionals to come to mutual agreements, making the process less stressful and more cost-effective.

While topics like custody and property division are often top of mind, debt is another major issue that must be addressed. If you believe liabilities will be a stumbling block in your collaborative divorce, talk to Orlando family lawyer about how debt is handled and how liabilities can be split fairly.

Addressing Debt in Divorce

Just like assets, debts accumulated during the marriage must be divided. In Florida, marital debts, those acquired by either spouse during the marriage, are typically subject to equitable distribution laws. This doesn’t necessarily mean a 50/50 split, it refers to a fair division based on each person’s financial situation, earning capacity, and other factors.

In a collaborative divorce, spouses agree to resolve all issues outside of court. Each person can retain their own attorney, but all parties agree to negotiate respectfully and transparently. This method often includes financial advisors, mental health professionals, and child specialists who assist with unique aspects of the divorce. The goal is a fair resolution without litigation.

Once a full picture of the debt load is available, the collaborative team can develop a tailored approach to divide the liabilities fairly. To do this, both spouses need to disclose all debts honestly, including:

• Credit card balances
• Mortgages and home equity loans
• Auto loans
• Personal loans
• Medical bills
• Student loans

Because the collaborative process emphasizes fairness and cooperation, spouses can explore a variety of solutions rather than relying on rigid court orders.

For some, one spouse assumes more debt in exchange for keeping a larger share of marital property. Or joint debts can be paid off using proceeds from the sale of a home or other shared asset. Other couples find it best to negotiate a repayment schedule, with checks and balances to ensure each party stays on track.

Why Collaboration Matters

The emotional and financial toll of a traditional courtroom divorce can be overwhelming. Collaborative divorce offers a more dignified path forward, and this can be especially important when it comes to complex financial matters like debt. By working together, you maintain control over decisions and outcomes, and you set the tone for respectful future interactions, which is particularly important when children are involved.

If you’re considering a collaborative divorce in Florida, partner with a knowledgeable Orlando family lawyer. A skilled attorney can help you understand your financial rights, guide negotiations, and ensure that both assets and debts are handled in a fair and equitable manner.

Were you considering collaborative divorce but worry about how your marital debts will be handled? The family law attorneys at Donna Hung are available to help. With the right support, you can move forward with clarity and confidence. Call 407-999-0099 or contact us online to get started.