Equitable property distribution is the means by which property, assets, and liabilities are divided when a couple divorces. Equitable does not necessarily mean equal, but often times it does end up being an equal division of things accumulated during the marriage.
The intention is to make the division fair for everyone involved, which usually means equal division unless there is a reason for it to be unequal. Keep in mind, not only are assets and property divided equitably, so are debts.
Most states, including Florida, use equitable distribution as a means for dealing with marital property. (Equitable distribution is defined based on Fl. Stat. 61.075)
What Property is Marital Property?
The key to figuring out what will be divided and what won’t be divided is to first determine what is considered marital property.
Marital property is property (including property, assets, and liabilities) acquired during the course of the marriage.
What Property is Non-Marital Property?
Florida Statute 61.075 outlines the division of property in a dissolution of marriage (divorce) case and specifies how non-marital property is treated. Here’s a summary of what constitutes non-marital property under this statute:
- Property Acquired Before Marriage:
- Any property that one spouse acquired prior to the marriage is considered non-marital property.
- Gifts and Inheritances:
- Property received as a gift or inheritance by one spouse, whether before or during the marriage, is considered non-marital property, as long as it is not commingled with marital property.
- Property Excluded by Agreement:
- Property that is specifically excluded from marital property through a valid prenuptial or postnuptial agreement remains non-marital.
- Income from Non-Marital Property:
- The income or appreciation of non-marital property is generally considered non-marital as well, unless it is commingled with marital property or treated as marital property during the marriage.
- Property Acquired After Separation:
- Property that is acquired by either spouse after the couple has legally separated is considered non-marital property.
The key factor is that non-marital property typically remains the sole property of the individual spouse who owns it, unless it is mixed or commingled with marital property, which may lead to it being treated as marital property.
- Marital Appreciation: If a non-marital asset (such as real property) increases in value during the marriage due to efforts or contributions made by either spouse, the appreciation in value may be considered marital property.
- Contribution of One Spouse: If one spouse contributes to the maintenance, improvement, or enhancement of the non-marital property, that spouse may have a claim to the increased value of the property, depending on the nature of the contribution.
How Is Marital Property Divided
If a couple is able to decide on a method of distribution on their own, the court generally upholds these agreements, as long as they are in writing and both people agreed to the distribution based on sound legal advice.
When divorcing couples are unable to reach an agreement, property is distributed based on the decision of the court. In most cases, the division is equal, but unequal divisions are perfectly legal and can be based on a few factors:
- The Contribution to the Marriage:
- Includes both financial and non-financial contributions, such as homemaking, child-rearing, and support of the other spouse’s career or education.
- The Economic Circumstances of the Parties:
- Considers the income, earning potential, and financial needs of both spouses.
- The Duration of the Marriage:
- Longer marriages may result in more equal distribution, while shorter marriages may lead to an unequal distribution based on other factors.
- The Contribution of Each Spouse to the Acquisition, Enhancement, and Production of Income or the Improvement of the Marital Assets:
- Evaluates how each spouse contributed to acquiring, improving, or enhancing marital property.
- The Intentional Dissipation of Assets:
- If one spouse wastes or dissipates marital assets, the court may award a larger share of the remaining property to the other spouse.
- The Desirability of Retaining the Marital Home or Other Assets:
- If retaining the marital home is in the best interest of any children or for other reasons, the court may award the home to one spouse.
- The Tax Consequences:
- Considers the tax implications of dividing certain assets, such as retirement accounts or real estate.
- Any Other Factors:
- The court may also consider any other relevant factors to ensure a fair and just distribution of property.
In some instances, it might be difficult to divide an asset, so the court will look for other ways to balance the distribution. There might also be instances in which the division is delayed, which is often the case when there is a marital home in question and minor children are living in the marital home. The court might order the couple to sell the home at a future date and divide the proceeds at that time.
The distribution and division of property are often one of the most challenging aspects of ending a marriage. Even couples involved in an otherwise non-contentious divorce might find they need some guidance when it comes to property distribution.
Working with an Experienced Divorce Attorney
If you need assistance with equitable property distribution during your divorce, our team can help. Our primary legal focus is Florida Family Law, but Mr. Jentis, Esq. also remains active in both the New Jersey and New York Bars for multi-state cases. Our team has assisted clients with their divorces, including issues related to property distribution, and we are familiar with laws regarding divorce in all three states.
For more information about equitable property distribution or to learn how you can move forward with your legal matter, please contact us at one of the numbers above to schedule a consultation. We provide in-depth consultations for a nominal fee that can help you understand your legal rights and to provide you with various options you may have available to you to address your concerns.