Dividing marital assets can be one of the most complex and contentious aspects of a divorce. In Florida, the process is governed by the principle of equitable distribution, which aims to divide assets and liabilities fairly (equitably)—though not necessarily equally—between spouses. To protect your financial future, it’s crucial to understand what qualifies as marital property and how Florida courts handle asset division.
What Is Marital Property?
In Florida, marital property generally includes assets and debts acquired by either spouse during the marriage, regardless of whose name is on the title. Examples of marital property include:
- Real estate purchased during the marriage with Marital Funds: This includes the marital home or any real other property acquired with marital funds while married.
- Real Property Owned Jointly: This includes property owned as tenants by the entireties.
- Income earned during the marriage: Wages, bonuses, and other earnings are considered marital property.
- Retirement accounts and pensions: Any contributions made to these accounts during the marriage are typically marital assets, as well as a percentage of the appreciation in the accounts resulting from the contributions.
- Businesses started or expanded during the marriage: If one spouse starts or grows a business during the marriage using that spouse’s marital efforts, its value may be subject to equitable distribution.
- Debts incurred during the marriage: This includes credit card debt, loans, and mortgages taken out while married.
What Isn’t Considered Marital Property?
Non-marital (or separate) property is generally excluded from equitable distribution. Examples of non-marital property include:
- Assets owned before the marriage: If you brought property into the marriage, it usually remains yours, provided it wasn’t commingled (mixed) with marital assets.
- Inheritance or gifts received by one spouse: Inheritances or gifts designated for one spouse are typically considered non-marital, as long as they are kept separate.
- Property outlined in a valid prenuptial or postnuptial agreement: If you have a legally binding agreement specifying certain assets as non-marital, those terms will generally be upheld.
- Personal injury settlements: Compensation for pain and suffering or emotional distress is usually treated as non-marital, while awards for lost wages and medical expenses may be considered marital property.
The Equitable Distribution Process
Florida follows the principle of equitable distribution, which means the court divides marital assets and liabilities in a manner that is fair but not always equal. Here’s how the process works:
- Identify and classify assets and debts: The first step is determining which assets and liabilities are marital and which are non-marital.
- Value the marital property: Each marital asset is assigned a fair market value. This may require appraisals, financial statements, or expert testimony.
- Divide the property: Courts consider several factors to determine a fair division, including:
- The length of the marriage.
- Each spouse’s economic circumstances.
- Contributions to the marriage, including homemaking and child-rearing.
- Intentional dissipation or waste of marital assets by either spouse.
Common Misconceptions About Marital Property
- “Everything automatically gets split 50/50”: While equitable distribution aims for fairness, it doesn’t always mean an equal division. Courts consider many factors when deciding what’s fair. And only marital assets and liabilities get divided.
- “If my name is on the title, it’s mine”: Property acquired during the marriage is typically marital, even if it’s titled in one spouse’s name.
- “Inherited assets are always mine”: Inheritances can become marital property if they are commingled, such as by depositing inheritance money into a joint account or using it to purchase marital property.
- “Debts are only divided if both spouses signed for them”: Even if only one spouse’s name is on a credit card or loan, the debt may be considered marital if it was incurred during the marriage.
Protecting Your Interests
If you’re facing a divorce, it’s essential to:
- Gather documentation of all assets and debts.
- Avoid commingling separate property with marital property.
- Work with a family law attorney to ensure your rights are protected during the equitable distribution process.
Conclusion
Dividing marital assets in Florida requires a thorough understanding of what qualifies as marital property and the equitable distribution process. By knowing your rights and taking proactive steps to protect your assets, you can achieve a fair and favorable outcome. If you have questions about your specific situation, contact our office for a consultation.
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