Understanding Florida’s Equitable Distribution Law
What it Means for Your Divorce
Divorce can be a challenging experience, especially when it comes to dividing property, assets, and debts. Like many other states, Florida follows the principle of “equitable distribution,” which means the division of marital property is based on what is fair and just rather than simply splitting everything 50/50. In this article, we’ll dive into how equitable distribution works in Florida and what it might mean for you if you’re going through a divorce.
What is Equitable Distribution?
Equitable distribution is the legal principle Florida courts use to divide marital assets and liabilities during a divorce. Unlike community property states, where all marital property is split equally, Florida courts aim to achieve a fair and just distribution of property. This does not necessarily mean equal. Instead, the court considers various factors to determine how to divide the marital assets and debts equitably for both parties.
Marital vs. Non-Marital Property
A crucial part of equitable distribution is distinguishing between marital and non-marital property. Here’s a breakdown of each:
- Marital Property: This includes assets and debts acquired by either spouse during the marriage. Examples include the family home, vehicles, bank accounts, retirement accounts, and debts such as credit cards and loans accumulated during the marriage.
- Non-Marital Property: This includes assets and debts acquired by either spouse before the marriage or received individually through inheritance or gifts. For example, if one spouse received an inheritance during the marriage and kept it in a separate account, that may be considered non-marital property. However, if non-marital property has been “commingled” or mixed with marital assets, it may be partially or fully considered marital property.
Factors Affecting Equitable Distribution
Florida courts consider several factors to ensure a fair division of assets and debts. Here are some of the key considerations:
- Duration of the Marriage: The length of the marriage can significantly impact how assets are divided. In a short-term marriage, courts may attempt to restore each spouse to their financial position before the marriage. The court might aim for a more substantial division in a long-term marriage.
- Contributions to the Marriage: This includes financial and non-financial contributions. For example, one spouse may have been the primary earner while the other focused on raising children and maintaining the household. Both forms of contribution are valued and considered in the division.
- Economic Circumstances: The court examines each spouse’s financial situation, including earning potential and any special needs or responsibilities. If one spouse is significantly better off financially, the court may award more marital property to the other.
- Interruption of Personal Careers or Educational Opportunities: If one spouse sacrificed career advancement to support the family or further the other’s career, this factor may play a role in distribution. The court may provide additional assets to that spouse to compensate for the financial setback.
- Desirability of Retaining Certain Assets: In some cases, the court may consider whether it’s more practical for one spouse to keep a particular asset. For instance, one spouse might retain the family home if it serves the best interests of any children involved.
- Intentional Dissipation of Marital Assets: If one spouse has spent or wasted marital assets frivolously just before the divorce, the court may reduce that spouse’s share in the division as a form of penalty.
Examples of Equitable Distribution in Action
To better understand how equitable distribution works in Florida, let’s explore a few hypothetical examples:
Example 1: The Family Home
John and Sarah have been married for 15 years and share a family home valued at $300,000 with $100,000 left on the mortgage. During the divorce, they decide that Sarah will keep the house and continue to raise their children there. The court may order Sarah to refinance the mortgage in her name or give John a portion of the home’s equity.
Example 2: Retirement Accounts
Mark has accumulated $100,000 in a retirement account during a ten-year marriage, while his spouse, Lisa, has a retirement fund of $50,000. Since both accounts were contributed to during the marriage, the court might add the total amount together and divide it equally, giving each spouse $75,000 in retirement funds.
Example 3: Credit Card Debt
Emily and Jake have been married for eight years and have accumulated $20,000 in credit card debt. Even though Emily is the primary cardholder, both spouses used the card during the marriage. The court may decide that both are equally responsible for this debt and order them to split the liability.
Can You Avoid Equitable Distribution?
There are ways to manage asset division outside the court’s equitable distribution. One popular option is a prenuptial agreement. A couple signs this legally binding document before marriage, outlining how assets and debts will be divided in case of divorce. If a prenuptial agreement is in place, the court typically upholds its terms as long as they are fair, signed voluntarily, and not fraudulent.
Similarly, if spouses can mutually agree on how to divide their property and debts, they can submit a marital settlement agreement to the court. If the judge finds the agreement fair, it can be adopted without going through a traditional distribution process.
How to Prepare for Equitable Distribution
If you’re going through a divorce, it’s essential to take proactive steps:
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- Gather Documentation: Collect records for all assets, liabilities, and properties owned, including deeds, mortgage statements, bank statements, and tax returns.
- Understand the Value of Your Assets: It’s crucial to hire a financial expert or appraiser to understand the value of significant assets like your home, business, or investments. This knowledge will empower you and ensure you’re in control of your financial future.
- Consult with a Family Law Attorney: An experienced attorney can help you navigate Florida’s equitable distribution law and advocate for your best interests during negotiations and court proceedings. Their support will reassure you that you’re not alone in this process.
Final Thoughts
While divorce is never easy, understanding Florida’s equitable distribution law can help you feel more confident and prepared. Remember, equitable distribution aims to achieve a fair result—not necessarily an equal one. By familiarizing yourself with how marital assets and debts are handled and seeking professional guidance, you can approach your divorce with greater clarity and peace of mind. If you live in the Florida counties of Palm Beach, Martin, St. Lucie, Miami-Dade, Orange, Broward, or Hillsborough and have questions, you can call (561-530-4568 to make an appointment for a free, in-office, initial consultation with Board Certifies Attorney Grant Gisondo. His website is https://gisondolaw.com, and his email is grant@gisondolaw.com.
Divorce can feel overwhelming, but with the right knowledge and support, you can make informed decisions. Equitable distribution is a complex area of family law, but understanding the basics can help you advocate for yourself and ensure a fair outcome.