How Does a Debt Become An Asset?

This actually happened in a high asset divorce case.

Crazy question, I know, but recently an opposing attorney in an alimony case actually made this claim in a dissolution proceeding.  The short answer is that a debt is a debt, not an asset from which the Court can determine

a party’s ability to pay alimony.  The opposing attorney stated in her filing:

“The husband testified that he encumbered himself with a $75,000.00 personal loan.  This loan created a $772.00 monthly expense for the Husband, but did not contribute to his income according to his Financial Affidavit.  This money then is a Capital Asset that adds to his ability to contribute to his Wife’s need.”

In this case, the husband had attorneys fees, costs, and other expenses which were creating credit card debt.  He took out a loan at 6% to pay off this debt, instead of the high credit card rates.  The other attorney thought that he did this to avoid paying alimony, but it was only because he could not pay all of his bills out of his income. When the other attorney stated that this debt was an asset in a pleading read by the Judge, it made the rest of her pleading less authentic.  Remember, always be the most reasonable, and reasoned, person in the room when your children, assets, and income are at issue.

If you are considering divorce, and have questions about property division, spousal support, or the like, please call us.  Our law firm represents persons in high asset divorces, dealing with timesharing, property division, child support, spousal support, and other marital issues.

logo

At Tampa Bay Legal Center, P.A., we care about our clients and about helping them resolve the legal issues they face in the most efficient and effective manner possible. Our law firm is led by attorney Carl J. Ohall who, for more than 25 years, has helped people throughout the Tampa area overcome legal challenges that affect their families, finances & health.

Contact Us

611 S Kings Avenue
Brandon, FL 33511

(813) 341-3333

Call Now Button(813) 341-3333