If you are facing a divorce in Florida, understanding how your property will be divided will be one of the most important aspects of the process.
How property is divided during a divorce varies from state to state. Unlike community property states, Florida follows an equitable distribution method of dividing marital property. Knowing Florida laws and how equitable distribution works will be critical to ensuring that your property division is fair, and you know what to expect.
Divorce and Property Division: What You Need to Know
Property division is more than just splitting your belongings. It’s about ensuring the division is fair, considering your future needs and your contributions to the marriage. Fair division of assets can affect everything from where you can live to your long-term financial goals. Understanding how this works is critical to protecting your rights and your financial future.
Community Property Vs. Equitable Distribution: What is the Difference?
States have two primary methods of splitting marital assets and debts in a divorce: community property division and equitable distribution.
Laws about who owns what in a marriage differ from state to state, which can significantly affect how assets and debts are divided in a divorce. Currently, nine states are community property states, meaning that married spouses share marital assets and debt equally. In a divorce, these assets and debts are split 50/50 between spouses.
However, other states recognize common law where spouses can own their own property if it is not jointly acquired. Equitable distribution then determines who gets what when they divorce. Florida is an equitable distribution state.
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Marital Vs. Separate Property: Why This Matters
Property distribution, under Florida law, usually considers only marital property.
Marital property is any income, assets, debts, retirement benefits, or property acquired with marital funds that a couple acquires during their marriage. Separate property is generally anything acquired before marriage or after they separate. There are exceptions to this rule, such as when separate assets become commingled with marital assets, but for the most part, only marital property will be subject to division in a Florida divorce.
What is Florida’s Approach to Equitable Distribution?
Florida uses the equitable distribution model for determining marital property division in a divorce. This means that the court must begin with the premise that the distribution should be equal, unless there is a justification for an unequal distribution based on the relevant statutory factors. Taking into account the statutory factors, the court considers what is “equitable” considering each couple’s unique circumstances.
In an equitable distribution decision, the court will consider the following factors in determining what is fair:
- What each spouse contributed to the marriage, including both financial and non-financial contributions, such as homemaking or raising children
- The marriage’s duration
- The economic circumstances of each spouse, including each party’s earning capacity
- Any interruption of a career or education for the benefit of the marriage
- Any desire to retain specific assets, such as the family home or business
- Any contribution to the acquisition or enhancement of both marital and non-marital property by either spouse
- Any waste or dissipation of marital assets
and other factors the court may deem relevant.
Furthermore, Florida House Bill 521 recently introduced several important clarifications and changes to the equitable distribution statute providing clearer guidelines and reducing ambiguity, so couples have a better understanding of what they are entitled to during property division.
Can You Agree to Divide Your Property Between You Without the Court Getting Involved?
In Florida, couples are encouraged to reach mutual agreements on their own regarding the division of their property. This can be accomplished through negotiation with or without their attorneys or mediation. The agreed-upon terms will then be formalized into a marital settlement agreement that becomes part of the decree if the court believes it is fair and approves it. If a couple can’t agree after all, the court will step in to make the final decisions according to equitable distribution principles.
While coming to mutual agreements outside the courtroom is encouraged, there can be risks when agreeing to property division without some legal oversight. Without legal knowledge or guidance, one spouse may unintentionally agree to terms not in their best interest or overlook financial details. Power imbalances and lack of transparency can lead to unfair agreements, and improper documentation could result in court challenges in the future. Consulting with a family law attorney ensures an agreement is fair, legally enforceable, and protects your long-term interests.
Why Understanding Florida’s Property Division Laws Matter
If you are facing a divorce in Florida, being aware of state equitable distribution laws allows you to understand what you are entitled to in a fair distribution and helps set expectations during your divorce. Understanding property division laws not only empowers you to make informed decisions but can also ensure your financial future is safeguarded. Unfortunately, not understanding what you are entitled to can lead to unexpected outcomes, such as losing rights to some assets or assuming more debt than anticipated.
Consulting an experienced family law attorney ensures your rights and interests are protected, which can be especially crucial in divorces involving complex assets or closely held businesses. Your attorney will be able to offer valuable insight into how the court may view your situation and offer strategies to help protect your interests and navigate negotiations more effectively.
At Melone Hatley, P.C., our experienced office in Tampa, Florida is here to ensure your best possible outcome. We are committed to guiding and educating you every step of the way to help you understand your property division and other rights throughout your entire proceedings. If you are navigating a divorce in Florida and have questions concerning property division or other family law matters, call us at (813) 513 – 9443 or schedule a complimentary consultation through our website contact form with one of our client services coordinators.
