It may be a good idea for Florida residents and other individuals who are getting a divorce to either sell their homes or refinance their mortgages. Failing to account for a mortgage in a divorce may hurt a person's credit score. A lender doesn't care if a marriage has ended when it comes to getting the money it is owed. A lender can still come after a person listed on a loan until it is paid off or refinanced.
Many engaged couples in Florida might feel uncomfortable discussing finances and prenuptial agreements before getting married because it's not romantic. It may make them feel like they're saying 'I do" to a divorce before they say 'I do" at their wedding.
For Florida couples whose marriages are coming to an end, financial matters are often among the most important. Having a qualified attorney and a financial adviser can help prevent an imbalance of power and ensure important issues do not go overlooked, but individuals are their own best advocates in many cases. There are a few things that parties to a divorce can do to make sure they're covering themselves with regard to assets.
Finances are often tighter after a divorce, but a strain can start before a settlement is finalized. Florida residents may wonder about using joint accounts during the process. In many marriages, one partner handles the finances. While there is nothing wrong with this, the other person should at least know basic information. This includes income and investment information, the different types of joint accounts a couple has and how to access them.
When it comes to issues related to divorce, Florida residents may not put much thought into what happens to their car insurance policy. While it may be tempting to kick a former spouse off of a policy, it cannot happen without that person's consent. Insurance companies may ask that a removal request be presented in writing to prove that consent has been given.
A marital residence is typically the biggest asset a married couple owns. Therefore, figuring out what to do with a home is often one of the most difficult parts of a divorce. Florida residents may wish to keep a home or buy a new one with funds from the equitable distribution of joint assets.
When a Florida couple gets a divorce, there might be a retirement account to divide. Depending upon the type of account, the process may require a complex document called a Qualified Domestic Relations Order. It can end up being costly, and the parties might want to work with a certified divorce financial analyst.
There are certain obligations that are not dischargeable when Florida residents file for bankruptcy under Chapter 7 or Chapter 13. In the case of a debtor who has gone through a divorce, two of these are child support and alimony. However, other obligations that have been incurred as a result of a divorce usually are dischargeable. A ruling that was issued in early March by the U.S. Bankruptcy Court for the Northern District of Georgia has affirmed that this is the case regardless of what kind of language is contained in the divorce order.
A marriage is not unlike a business partnership; it begins with two like-minded individuals, it builds and grows over time, assets and debts accumulate, and each partner has a role to play to keep it functioning. However, marriages, like businesses, sometimes come to an end. The possible reasons are manifold, but the results are the same. The partnership is finished, and the company has to be dissolved and divided between the partners.
Homeowners that choose to get a divorce in Florida will need to decide how to divide their real estate. Typically, both spouses have their names on the mortgage. If they sell the home and go their separate ways, then the loan is resolved, but sometimes one spouse chooses to keep the house. In that case, the ex-spouse remaining in the home might buy out the other person's legal interest in the property as part of the divorce settlement. A buyout, however, does not necessarily resolve the existing mortgage with two names on it.