Dividing Marital Property in Florida

Going through a divorce is challenging on many levels, and one of the biggest sources of stress is often the division of property. Understanding how Florida law handles the assets and liabilities you've accumulated during your marriage can provide clarity and reduce anxiety. Florida follows the principle of "equitable distribution," which doesn't always mean a 50/50 split. Instead, the court aims for a division that is fair and just based on the unique circumstances of your marriage.

This guide will walk you through the process of property division in Florida. We'll explain what constitutes marital versus non-marital property, outline the factors a judge considers when distributing assets, and discuss how different types of property are handled. Knowing your rights and what to expect can empower you to navigate your divorce more effectively. If you're looking for guidance from a family law practice in Orlando, FL, this information will serve as a crucial starting point.

What Is Marital Property?

Before any property can be divided, it must first be classified. In Florida, property is categorized as either "marital" or "non-marital" (also known as separate property).

Marital property generally includes all assets and debts acquired by either spouse during the marriage. It doesn't matter whose name is on the title or who earned the money to purchase it. If it was acquired from the date of marriage until the date of filing for divorce, it is typically presumed to be marital property.

Examples of marital property include:

Real estate: The family home, vacation properties, and rental properties bought during the marriage.
Bank accounts: Joint and individual accounts containing funds earned during the marriage.
Retirement accounts: Portions of 401(k)s, IRAs, and pensions that accrued during the marriage.
Vehicles: Cars, boats, and other vehicles purchased during the marriage.
Investments: Stocks, bonds, and mutual funds acquired during the marriage.
Personal property: Furniture, art, jewelry, and other household goods.
Business interests: A business started or grown during the marriage.

Non-marital property, on the other hand, is property that belongs solely to one spouse and is not subject to division. This category typically includes:

Assets and debts acquired by either spouse before the marriage.
Inheritances or gifts received by one spouse individually during the marriage.
Income derived from non-marital assets (e.g., rent from a pre-marital property), unless those funds were commingled with marital funds.
Assets and liabilities that are excluded by a valid prenuptial or postnuptial agreement.

The Complication of Commingling

The line between marital and non-marital property can blur through a process called "commingling." This happens when separate property is mixed with marital property. For example, if you deposit inheritance money into a joint bank account and use it for shared expenses, that inheritance may lose its non-marital status and become subject to division.

Similarly, if a non-marital asset increases in value due to the efforts or contributions of either spouse during the marriage, that increase in value is considered marital property. A common example is a house owned by one spouse before the marriage that appreciates because marital funds were used for renovations.

Identifying and tracing these assets requires careful financial analysis, which is why working with an experienced family law attorney is so important.

How Is Property Divided? The Equitable Distribution Standard

Florida is an equitable distribution state. This means the court will divide marital assets and liabilities in a way it deems fair, which is not necessarily an equal split. The starting point is a presumption that the division should be equal, but the court can deviate from a 50/50 split if there is a justifiable reason.

Factors Influencing Equitable Distribution

Florida Statute 61.075 outlines several factors that a judge must consider when determining what constitutes a fair division of property. These factors help the court create a distribution plan tailored to the specifics of each case.

Contribution to the marriage: This includes the financial contributions of each spouse, as well as contributions as a homemaker, parent, or caregiver. The law recognizes that non-financial contributions are valuable and essential to the marital partnership.
Economic circumstances: The court will look at the financial situation of each spouse after the divorce, including their income, earning capacity, and separate assets.
Duration of the marriage: For a long-term marriage, the court is more likely to start with a 50/50 split. In a short-term marriage, the court might aim to return the spouses to their pre-marital financial positions.
Interruption of careers or education: If one spouse put their career or education on hold to support the other's ambitions or to raise children, the court may award them a larger share of the assets.
Contribution to the other spouse's career: If one spouse contributed to the education or career advancement of the other, this can be a factor.
Desirability of retaining an asset: The court might find it appropriate for one spouse to keep a specific asset, like a business, intact and free from interference by the other.
Desirability of retaining the marital home: If minor children are involved, the court may grant the custodial parent exclusive use of the family home for a certain period.
Misconduct of a spouse: If one spouse intentionally wasted or destroyed marital assets (for example, by spending money on an affair or gambling), the court can adjust the distribution to compensate the other spouse.
Any other factors necessary for fairness: The law allows judges to consider any other relevant factor to ensure an equitable outcome.

Dealing with Complex Assets

Dividing a simple savings account is one thing, but many divorces involve more complex assets that require special attention.

The Marital Home

For most couples, the marital home is their most significant asset. Spouses have several options:

Sell the home and split the proceeds. This is often the cleanest solution.
One spouse buys out the other. This requires refinancing the mortgage and paying the other spouse their share of the equity.
Continue to co-own the home. This is rare but may be an option if children are involved and the parents want to maintain stability for them.

Retirement Accounts

Retirement funds earned during the marriage are marital property. To divide these accounts without incurring tax penalties, a special court order called a Qualified Domestic Relations Order (QDRO) is necessary. A QDRO directs the plan administrator to distribute a portion of the account to the non-employee spouse.

Business Valuation

If a business was started or grew significantly during the marriage, it must be valued to determine the marital portion. This often requires hiring a forensic accountant or business valuation expert to assess the company's worth. The process can be complex, especially for privately held companies.

Get the Legal Guidance You Need

Navigating the division of marital property requires a thorough understanding of Florida law and a careful analysis of your financial history. The process is often intricate, and the outcome can have a lasting impact on your financial future. Working with a knowledgeable attorney can help ensure your rights are protected and that the final distribution is truly equitable.

If you are facing a divorce and need assistance with property division or other related matters, our family law practice in Orlando, FL, is here to help. Contact Frank Family Law today to schedule a legal consultation and gain the clarity and confidence you need to move forward.