May 18, 2023
Divorce can be a complex and emotional process, and property division is one of the most challenging aspects of divorce. Florida law requires an equitable distribution of property, meaning marital assets and debts must be divided fairly but not equally. Here are six things divorcing couples should know about Florida property division.
Marital vs. Non-Marital Property
The first thing to understand about property division in Florida is the difference between marital and non-marital property. Marital property is any property acquired during the marriage, regardless of whose name is on the title or deed.
This includes income earned during the marriage and assets such as cars, homes, and investments. Non-marital property, on the other hand, has assets acquired before the marriage or after the date of separation, as well as gifts or inheritances received by one spouse.
It’s important to note that non-marital property can become marital property if commingled with marital assets. For example, if one spouse owned a house before the marriage and then used marital funds to pay the mortgage or make improvements, the house may become marital property.
Equitable Distribution
Florida law requires an equitable distribution of marital assets and debts. This means that property is divided fairly but not necessarily equally. The court will consider a variety of factors when determining how to divide property, including:
- The length of the marriage
- The financial resources of each spouse
- Each spouse’s contribution to the marriage (including contributions as a homemaker)
- The value of each spouse’s non-marital property
- Any economic misconduct by either spouse (such as wasting marital assets)
It’s important to note that equitable distribution does not necessarily mean a 50/50 split of assets. The court will strive to divide property fairly and honestly, given the specific circumstances of each case.
Marital Home
The marital home is often one of the most valuable assets to be divided in a divorce. If both spouses agree on how to divide the home, they can do so without court intervention.
However, if they can’t agree, the court will consider various factors when determining who gets the home. These factors may include:
- Each spouse’s financial resources
- Each spouse’s ability to maintain the home
- The best interests of any children involved
If one spouse is awarded the home, they may need to buy out the other spouse’s share of the equity. Alternatively, the house may be sold, and the proceeds divided between the spouses.
Retirement Accounts
Retirement accounts, such as 401(k)s and IRAs, are often some of the most valuable assets to be divided in a divorce. In Florida, retirement accounts are considered marital property if accumulated during the marriage. The court will consider a variety of factors when determining how to divide retirement accounts, including:
- The length of the marriage
- Each spouse’s financial resources
- Each spouse’s contribution to the account
- The tax consequences of dividing the account
Dividing retirement accounts can be complex, and working with an experienced divorce attorney and financial planner is essential to ensure the division is fair and equitable.
Business Interests
If one or both spouses own a business, the business may be considered a marital asset subject to division. The court will consider a variety of factors when determining how to divide a business, including:
- The nature of the business
- Each spouse’s contribution to the business
- The financial resources of each spouse
- The value of the business
- The tax consequences of dividing the business
Dividing a business can be complex, and working with an experienced divorce attorney and business valuation expert is essential to ensure that the division is fair and equitable.
Debts
In addition to dividing assets, the court will also divide marital debts. This includes credit card debt, mortgages, car loans, and other liabilities. The court will consider a variety of factors when determining how to divide debts, comprising:
- Each spouse’s ability to pay
- The purpose of the debt (such as whether it was used for marital expenses or one spouse’s expenses)
- The value of each spouse’s non-marital property
- Any economic misconduct by either spouse (such as running up excessive debt)
It’s important to note that dividing debts does not necessarily mean a 50/50 split. Given each case’s specific circumstances, the court will strive to divide debts fairly and equitably.
Conclusion
Property division in a Florida divorce can be complex and emotionally charged. Working with an experienced divorce attorney who can guide you through the process and help you achieve a fair and equitable division of assets and debts is essential.
By understanding the differences between marital and non-marital property, the principles of equitable distribution, and the factors that the court will consider when dividing property, you can confidently approach the process and achieve a positive outcome.
How Can Attorneys Help
Dorsey Law JAX is top Jacksonville attorneys specializing in family law, criminal law, and personal injury. Clients seeking advice on a variety of family law concerns can turn to our firm. Our services include all aspects of family law, from urgent and short-term issues including restraining orders against domestic abuse to processing a final divorce and post-judgment adjustments of support and custody.
We make an effort to reach agreements through negotiation, but if required, we won’t hesitate to go to court or file an appeal. If our family law approach sounds like it might ease and resolve your divorce, contact The Dorsey Law Firm today to speak with family lawyers in Jacksonville!
