Can I Be Protected From My Spouse’s Business Debt?



It’s a common concern amongst both husbands and wives that a failing business could impact 

them personally. If your spouse has considerable business debt, you may be asking yourself 

how this impacts you. It’s important to understand how business debt works in general and 

also how debt works in a marriage and divorce.


When your spouse’s (the same goes for both husbands and wives) business is failing it is a 

reasonable concern that these debts could affect the household detrimentally. 


As we’ll cover in this article, you are free from liability in most cases. Here’s what you need 

to know.


Debt and Marriage In Florida

In Florida, you are not responsible for your business debts incurred prior to the marriage. 

Typically, debts incurred before marriage are considered non-marital property and you would 

not be liable for them. Attorney Marquez Kelly can explain all the potential debts you’ll be 

responsible for in your divorce.



When  Will A Spouse Be Liable for Business Debts?

You and your spouse will be liable for any debts you entered into during the time you are 

married. Florida is not a community property state, you would have to sign an agreement 

in order for the court to hold you liable for any debts your ex incurred in his or her name only. 


  • No Limited Liability: 

If your business does not offer limited liability, then this means that your spouse would also 

be liable for your business debts just as they would for any personal debts you share with 

one another. If the company was formed as an LLC, however, there is a good chance that a 

spouse will not be on-the-hook when it comes to business debts.


  • Co signature on Business Debt: 

Perhaps your spouse cosigned the loan documents that state that they will help you pay 

back any debts if you or the company are no longer able to do this. This is especially true 

in community property states.


Dealing with Bankruptcy and Divorce


Divorce and bankruptcy is another marriage-related factor that we must take a closer look 

at. Any Florida attorney will likely tell you that divorce and bankruptcy should not overlap at 

the same time because it can turn into an overly complicated matter. Part of the divorce 

process is working together to split up assets. If an automatic stay is given to creditors 

because somebody filed for business bankruptcy, it is impossible for the courts to divide 

assets, which means that your divorce process will take a longer amount of time than 

expected. This is why it is a good idea to never let the two coincide, and allow your business 

bankruptcy to play out if this is the option that works best for both of you.

 

How  Common Law and Community Property Works

In common law property states:

  • Each spouse is a separate entity.

  • They can own property independent of any interest in the other spouse. 

  • Assets and debts you acquire during a marriage are yours alone — unless otherwise
    indicated by a title or other legal document.

In community property states: 

  • The law typically considers any assets acquired during a marriage to be the property of
    both spouses.

  • It treats debt the same way — what you earn, save and spend in the marriage is 

    irrevocably tied to the other person, in most cases. 

  • The property can't be “separately” owned, the property is exposed to the liabilities and 

    creditors of both spouses.

  • In general, states that all assets purchased or acquired by a couple during their
    marriage are owned in equal measures by both of them.

Protecting yourself from debt

Paying off business debt can be difficult. If you don’t want to be liable for any sum of 

money your spouse received as part of their business activities, your only real option 

is to avoid co-signing or guaranteeing loans. Consulting with professionals to 

understand what your risks and options are is also crucial. They can also help you 

and your spouse deal with any financial hurdles the business may face.


Contact a Fort Myers, Florida Divorce Attorney

Attorney Marquez-Kelly provides a full range of personal and corporate services.  

Attorney Marquez-Kelly is a board member of the Association of Family Law 

Practitioners in Lee County. If you’d like to discuss your situation and learn more 

about your options, contact us today to schedule a consultation.




Attorney Marquez-Kelly

Professional Accomplishments



Areas of Practice


For legal queries, call Marquez Kelly-Law at 239-214-0403 or message us for a Free 

Half-Hour Consultation today.

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