In a divorce, one of the most critical concerns you may have is how to divide the wealth you built together. Florida’s approach to this process is known as equitable distribution, which governs the division of marital assets and liabilities. Here’s what you need to know.
What Does ‘Equitable’ Really Mean?
In the context of divorce, when we refer to “equitable distribution,” particularly within the legal framework of states like Florida, ‘equitable’ means equal. Rarely does it result in an unequal division. Here’s what it entails:
- Several Factors Considered: Courts will look at various factors, such as the duration of the marriage, the economic circumstances of each spouse, the contribution to the marriage by each spouse (including contributions as a homemaker), and the interruption of personal careers or educational opportunities, among others.
- Not Automatic 50/50 Split: While ‘equitable’ most often results in a 50/50 split of marital assets and liabilities, this is not a hard and fast rule. The division is based on many factors.
- Non-Marital vs. Marital Assets: The distinction between marital and non-marital assets is crucial in determining what is subject to division. Equitable distribution applies only to marital assets and liabilities.
- Case-by-Case Basis: Each divorce case is unique, and the concept of ‘equitable’ allows the court flexibility to tailor the division of assets and liabilities to the specific circumstances of each case.
- Contribution to Asset Value: The court may consider the contribution of each spouse to the acquisition, enhancement, and production of income or the improvement of, or the incurring of liabilities for, both the marital assets and the non-marital assets of the parties.
- Future Financial Circumstances: Courts may also look at the future financial circumstances of each spouse. This could include the ability to earn, the age and health of the parties, and retirement provisions.
- Custodial Responsibilities: If the couple has children, the custodial responsibilities each parent will have can also influence what is deemed ‘equitable.’
In Florida, the starting point for division is equal, but the courts can adjust based on the above factors to reach an equitable, if not equal, division. It is essential for individuals going through a divorce to seek legal counsel from a knowledgeable attorney who can guide them through the complexities of equitable distribution to ensure an acceptable outcome.
Identifying Marital Assets and Liabilities
What constitutes a marital asset or liability? Essentially, anything acquired or any debt incurred from the marriage’s inception to the divorce filing is presumed marital. It doesn’t matter whose name is on the title or who incurred the debt; if it arose within the marriage’s legal time frame, it’s subject to division, with several exceptions.
The Four-Step Process to Equitable Distribution
Equitable distribution in Florida follows a structured four-step process:
- Identification: Everything owned or owed is inventoried. This comprehensive list sets the stage for the subsequent steps.
- Classification: Each asset or debt is classified as marital or nonmarital. Inheritances, gifts from third parties, and pre-marriage acquisitions typically fall outside the marital scope.
- Valuation: Assigning a fair market value to each item is next. The fair market value is what a willing buyer would pay a willing seller, with both parties informed and not under pressure to act.
- Distribution: Finally, the assets and debts are divided, generally in a 50/50 split, though the court may adjust this based on various factors.
Marital Settlement Agreement
The result of this process is contained in the marital settlement agreement or final judgment, which records the division in detail. It’s vital that these documents are comprehensive and reflect the full scope of assets and liabilities to avoid future disputes. Equitable distribution may seem straightforward, but the intricacies can be complex. Specific circumstances might warrant a deviation from the equal division rule. The failure to properly classify or value assets will result in an inequitable division.
Contact Us, West Family Law Group, to get a Tailored Consultation.
Every situation is unique, and understanding the nuances of your case is critical. At West Family Law Group, in Orlando, FL, we’re equipped to walk you through the intricacies of Florida’s equitable distribution laws. If you’re facing the challenge of dividing your assets and debts, don’t navigate these waters alone. Contact us for a comprehensive consultation. We’ll dedicate the necessary time to educate you on the laws and provide tailored answers to your situation. At West Family Law Group, we’re not just attorneys; we’re your advocates, committed to ensuring an acceptable resolution to your divorce proceedings.
