Posted by Nydia Streets of Streets Law in Florida Divorce
When a third party creditor is owed money by a husband and wife, that creditor may be able to intervene in a Florida divorce case to preserve his or her rights. An example is when a relative lends money to a married couple and the couple defaults on the payments. Once a divorce is filed, the creditor may become a party to the case to pursue repayment of the loan. This was an issue in the case Frank v. Frank, 3D19-1525 (Fla. 3d DCA August 26, 2020).
During the parties’ intact marriage, the former husband’s mother loaned the couple money to purchase a home in Missouri. The couple agreed to pay the mother back in-full. Subsequently, the mother also loaned extra funds to the couple to pay the mortgage and to make renovations on the property. The couple then moved to Florida, failed to repay the loan, and defaulted on the mortgage on the property. The mother then sued the couple in Missouri for the unpaid loan. After arbitration, a final judgment was granted in the mother’s favor against the couple jointly and severally for $383,514.00.
The former wife filed for divorce in Florida, and the mother filed a motion to intervene in the divorce to satisfy her unpaid judgment from the Missouri case. Her motion to intervene was granted, and she recorded her judgment with the clerk of courts and requested judicial notice of her Missouri judgment. After the divorce trial, the court entered an order which reduced the mother’s Missouri judgment amount and divided the remaining amount equally between the former husband and former wife. The mother appealed, arguing it was error for the court to reduce the judgment.
First finding that the mother properly intervened in the case and properly took steps to enforce it through recording, the appellate court found it was error for the trial court to reduce the judgment. The court held “The parties do not dispute the validity of the Missouri judgment. The record is clear that the parties consented to arbitration and participated in a full trial on the merits of Esther Frank’s claim for money damages. The trial court, therefore, was precluded from inquiring into the merits of the cause of action or the logic or consistency of the Missouri court’s decision. Because Esther Frank appropriately intervened in this action and asserted her right to enforce the Missouri judgment, the court did not have discretion to alter or reduce the foreign judgment in violation of the Full Faith and Credit Clause.”
Intervening in a Florida divorce case may be necessary to preserve your rights. Schedule a consultation with a Miami divorce lawyer to understand how to proceed in your case.