The state of Florida divides marital assets and liabilities between divorcing spouses using the process of equitable distribution. Florida is an equitable distribution state, and as such, family courts make every effort to split marital property in a way that is fair to both spouses. Fair does not necessarily mean equal 50/50 split of the marital assets between the spouses. Florida Statute 61.075 defines how assets and liabilities are divided in a Florida divorce.
During the divorce process, the court will categorize assets as either marital or non-marital property. Property that is categorized as “marital” property is equitably divided between the divorcing spouses. Courts take into consideration a variety of factors when distributing property between divorcing spouses, such as the length of their marriage, each spouse’s financial situation, and each spouse’s contribution to the marriage. Non-marital, or separate, property is not divided. Florida’s equitable distribution rules apply to all property including debt, business ownership, investments, and the marital home.
What is Equitable Distribution?
Equitable distribution refers to the legal process used by Florida courts to split marital property between divorcing spouses in a way that is fair, but not necessarily equal. Florida is an equitable distribution state, so family courts try to divide assets fairly, rather than a 50/50 split. Marital assets are divided based on a variety of factor which are outlined t in Florida statute 61.075, to ensure a just outcome for both parties.
In a Florida divorce, the court establishes the equitable distribution of property, following guidelines outlined in Florida Statute 61.075. The distribution is influenced by factors such as the length of the marriage, economic circumstances of each spouse, and contributions made to the marriage. Prenuptial agreements can also play a role in determining how property is divided.
Certain assets, including property acquired during the marriage, retirement accounts, and marital debt, are subject to equitable distribution, while inheritances may or may not be included depending on how they were handled during the marriage. Exceptions to the standard process exist, such as cases involving dissipation of marital assets or special circumstances that impact fairness.
Additionally, while the court typically oversees the process, couples can negotiate equitable distribution outside of court, often using mediation to reach an agreement that avoids the need for litigation. The length of the process can vary depending on the complexity of the assets and the level of cooperation between the parties.
Is Florida an Equitable Distribution State?
Yes, Florida is an equitable distribution state. Florida divorce law states that marital property is divided between the spouses in a manner that is fair, but not necessarily equal. A typical divorce settlement in Florida involves a 50/50 division of marital property, unless there are reasons why an equal split would be inequitable (unfair) to either spouse.
Who Determines Equitable Distribution in a Florida Divorce?
In a Florida divorce, the Circuit Court determines equitable distribution of assets based on Florida Statute 61.075, which outlines the guidelines and factors for distributing marital property. Circuit Courts handle family law matters, including divorce, child custody, and the division of marital assets.
What Factors Affect Equitable Distribution in Florida?
The factors that affect equitable distribution in Florida include the duration of the marriage, the economic circumstances of each spouse, contributions to the marriage (including homemaking and childcare), the interruption of personal careers or education, intentional dissipation of marital assets, the desirability of keeping certain assets (like a business or professional practice) intact, and the preference for one spouse to retain the marital home for a dependent child
The factors used by Florida courts to determine the equitable distribution of marital assets are listed below.
- Duration of the marriage
- Economic circumstances of each spouse
- Contributions to the marriage by each spouse (including homemaking and childcare)
- The interruption of personal careers or education
- Any intentional dissipation of marital assets by either spouse
- financial circumstances of each spouse
- The desirability of either spouse of keeping assets such as a business or professional practice intact.
- The desirability of either spouse to retain the marital home as a residence for any dependent child of the marriage.
How do Hidden Assets Affect the Equitable Distribution of Assets in a Florida Divorce?
Hidden assets affect the equitable distribution of assets in a Florida divorce by undermining the fairness of the distribution process. If one spouse is found to be hiding assets during a divorce the court can punish them with sanctions, fines, or even awarding a larger portion of the marital assets to the spouse who was wronged.
Can Prenuptial Agreements Affect Equitable Distribution in a Florida Divorce?
Yes, prenuptial agreements can affect equitable distribution in a Florida divorce. If the prenuptial agreement is valid and enforceable, it can govern the division of assets, potentially bypassing the equitable distribution process outlined in Florida Statute 61.075.
Can the Dissipation of Marital Assets Impact Equitable Distribution in a Florida Divorce?
Yes, the dissipation of marital assets can impact how assets are distributed in a Florida divorce case. The wasteful dissipation of marital assets by one spouse may cause the court to adjust the way in which assets are divided to account for the value of the lost assets.
What Assets Are Subject to Equitable Distribution in a Florida Divorce?
All marital assets are subject to equitable distribution in a Florida divorce. Any assets or liabilities acquired by either spouse during the marriage are considered marital assets. This includes income, real estate, retirement accounts, investments, and debts accumulated during the marriage.
Are Retirement Accounts Subject to Equitable Distribution in Florida?
Yes, retirement accounts are subject to equitable distribution in Florida. Any portion of a retirement account, including pensions, 401(k)s, and IRAs, that was accrued during the marriage is considered marital property and is subject to division. Retirement assets earned before the marriage are typically considered non-marital property, unless they were commingled or contributed to during the marriage. Learn more in this article answering how are retirement accounts divided in divorce.
Is Debt Subject to Equitable Distribution in a Florida Divorce?
Yes, debt is subject to equitable distribution in a Florida divorce. Marital debts, which are debts incurred during the marriage, are divided between the spouses based on what is fair and equitable. When dividing debt during divorce, courts consider factors such as each spouse’s financial situation and the purpose of the debt. Debts incurred before the marriage or after separation are generally classified as non-marital and not subject to division.
Is Inheritance Subject to Equitable Distribution in a Florida Divorce?
No, inheritance is typically excluded from equitable distribution in a Florida divorce if it is classified as non-marital property. However, the rules on how inheritance is treated during a Florida divorce contain exceptions such as when inherited funds arecommingled with marital assets or used for marital purposes. Courts use Florida Statute 61.075 to assess how the inheritance was treated during the marriage to decide if it should be included in the division of assets.
What Are the Exceptions to Equitable Distribution in a Florida Divorce?
Exceptions to equitable distribution in a Florida divorce include non-marital property, such as assets acquired before the marriage, gifts, or inheritances specifically designated for one spouse, as long as they were not commingled with marital assets. Additionally, dissipation or waste of marital assets by one spouse, such as through fraud or reckless spending, may affect how the court allocates assets.
How Long Does the Equitable Distribution Process Take in a Florida Divorce?
The duration of the equitable distribution process in a Florida divorce case varies from a few months to a year or more. The duration of the equitable distribution process depends on factors such as the complexity of the case, the level of cooperation between the parties, and the court’s schedule.
Can equitable distribution be negotiated outside of court in Florida?
Yes, equitable distribution can be negotiated outside of court in Florida using methods such as mediation or collaboration. These processes allow spouses to agree on the division of assets without court intervention. This agreement, known as a Marital Settlement Agreement (MSA), is a legally binding document that outlines the terms of asset and liability division.. If both parties agree, the court will typically approve the settlement as long as it is fair and complies with Florida law.
Is Mediation Used to Negotiate Equitable Distribution in a Florida Divorce?
Yes, mediation is commonly used to negotiate equitable distribution in a Florida divorce. During divorce mediation, both spouses work with a neutral mediator to reach an agreement on the division of marital assets and liabilities. This process allows the parties to resolve disputes outside of court and reach a fair settlement, which can then be formalized in a Marital Settlement Agreement (MSA) and submitted to the court for approval.
What Are the Types of Property in a Florida Divorce?
The two types of property recognized in a Florida divorce are marital and non-marital property. Marital property includes any assets or liabilities such as bank accounts or credit card debt that were obtained during the marriage. Marital property is subject to equitable division during a divorce. Non-marital property is property or liabilities that were owned by either spouse before the marriage. Non-marital property is not subject to equitable distribution in a divorce.
Marital Property
According to Florida law, marital property is any asset or debt that was acquired by either spouse from the date of the marriage up until the date of separation or for filing for divorce. Marital asset may also include non-marital assets that increased in value during the marriage due to the contributions of either spouse, assets that were commingled with marital property, assets titled in both spouses names, and any portion of retirement, pension, or deferred compensation that was earned during the marriage. Inheritances and gifts are not generally considered marital property, but there are exceptions in which they are. A valid and enforceable prenuptial agreement can override Florida law on what is considered a marital asset during a divorce.
What Are Some Examples of Marital Property?
Examples of marital property under Florida law include income earned during the marriage, joint bank accounts, investments, real estate, vehicles, businesses, and retirement accounts.
Some common examples of marital property according to Florida divorce law are listed below.
- Income earned during the marriage: salaries, wages, bonuses, and other income earned by each spouse.
- Real Estate: property such as the primary residence or vacation properties that were purchased after the date of the marriage.
- Joint bank accounts: funds deposited in bank accounts held jointly by both spouses during the marriage.
- Investments: stocks, bonds, mutual funds, CDs or other investments purchased during the marriage.
- Vehicles: cars, boats, RVs, or campers purchased after the date of marriage.
- Businesses: businesses or interests in businesses that were established or grown during the course of the marriage.
- Retirement Accounts: 401ks, IRAs, pensions or other retirement plans that were contributed to during the marriage.
Assets such as these that are acquired DURING the course of the marriage can be divided in an equitable manner during divorce proceedings in Florida.
Does Marital Property Include Gifts and Inheritances in Florida?
No, gifts and inheritances received by one spouse during the course of the marriage are typically considered non-marital property, making them ineligible for equitable distribution. An exception to this rule occurs when a gift or inheritance is commingled with marital assets. Once assets are commingled, a judge may rule they are no longer separate, and therefore subject to equitable distribution during a divorce.
Can a Prenuptial Agreement Supersede Florida’s Equitable Distribution Laws?
Yes, a prenuptial agreement can supersede Florida law on the division of marital assets if the agreement is valid and enforceable. To be considered valid both parties must have entered the agreement voluntarily and the terms must meet the legal requirements of the state of Florida.
Non-Marital (Separate) Property
Non-marital (separate) assets are any assets or liabilities that were acquired by either spouse before the marriage or through inheritance or gifts specifically designated for one spouse. Non-marital assets are not subject to equitable distribution during a Florida divorce. Separate property can include assets owned before the date of marriage, inheritances, gifts specifically designated for one spouse, income from non-marital property, and assets that are protected by a valid prenuptial agreement.
Non-marital property that is commingled with marital property though the course of the marriage may be subject to equitable distribution under certain circumstances, such as being used for marital purposes or managed as part of the marital estate.
What is the Process for Dividing Assets in a Florida Divorce?
The process for dividing assets in a Florida divorce involves the court classifying all property as marital or non-marital, assigning a monetary value to all marital assets, evaluating factors such as the length of the marriage and the financial needs of each spouse, and equitably splitting the assets between the spouses. If the spouses can agree on a division of the assets on their own, outside of court, through mediation or negotiation, the court will generally approve the agreement.