What is Equitable Distribution?

Handling Assets During the Dissolution of Your Marriage

Think everything will be split equally during your divorce? Well, it’s more complicated than that. Equitable distribution is a legal principle used in Florida divorce proceedings to divide marital assets and debts between spouses. Unlike equal distribution, which splits everything 50/50, equitable distribution considers various factors to determine what is fair for each party.

These factors may include the length of the marriage, the financial contributions of each spouse, and their respective needs and future earning capacities. The goal is to achieve a division that is just and reasonable, reflecting the unique circumstances of the parties.

At Untying the Knot, we understand that navigating the complexities of equitable distribution can be challenging. Our experienced Florida divorce attorneys are here to guide you through the process, ensuring that your rights are protected and that you receive a fair share of the marital property.

What Property is a Part of Equitable Distribution in Florida?

Non-Marital Property

First, we need to determine if the property is “marital” or “non-marital.” Non-marital property will not be subject to any sort of split. This kind of property is defined as property owned before the union or gifts you received during the marriage (NOT INCLUDING gifts from a spouse) or an inheritance. Non-marital property can also be defined by a pre-marital agreement.

If the non-marital property has provided an income, that income is also considered separate property unless you commingled it with obviously marital funds. For example, if you have a trust fund that earns interest and you use that interest to pay the mortgage on the marital home or put it in a joint account, you made it marital.

Additionally, if you have a premarital home that was acquired separately, but you pay the mortgage payments after you get married and/or put the money you earn during the marriage into the home, you have made at least a part of that home a marital asset.

If you have questions regarding this issue or any other issue, please schedule an appointment with our attorneys.

Marital Property

In the state of Florida, marital property means all assets and debts acquired during the marriage, regardless of whose “name it’s in.” An example of this would be a credit card. If the card has only one spouse’s name on it, it will STILL be considered a joint debt. It does not matter if the asset of the credit card was acquired separately.

Assets can include but are not limited to:

• Houses
• Land (real estate property)
• Cash
• 401ks
• Other retirement accounts (whether or not they have achieved vested status)

If your benefits started accruing BEFORE the marriage, a determination of the percentage of the “funds” that may be considered marital property may be necessary.

Likewise, if something of value was singularly titled before a marriage, and it is rewritten to become a jointly owned item, then it WILL be considered marital property for purposes of distribution.

How Useful is Divorce Mediation?

Couples should try to divide property privately if possible. Mediation can help dissolve your marriage. If you have to go in front of a judge to divide your debts and assets, they may decide to look at:

1. Financial circumstances of the parties
2. The actual length of the marriage
3. Debts and liabilities specific to EACH spouse
4. Each spouse’s definable contributions to the marriage
5. Whether or not one of the spouses had to stop a career or interrupt the pursuit of an educational degree for the sake of the marriage or the other spouse’s advancement
6. If minor children are involved, the advisability of allowing them to remain in the marital home
7. Whether one or both spouses intentionally spent down/ruined assets after filing for divorce or in the two years immediately preceding such a filing

How Does Divorce Court Decide Who Keeps What Marital Assets?

Divorce courts decide who gets what marital assets based on state laws. These laws usually follow one of two approaches: “equitable distribution” or “community property.”

1. Equitable Distribution: Florida, along with most other states, uses this method, where marital property is divided fairly but not necessarily equally. Courts consider factors like the duration of the marriage, each spouse’s contributions (financial and non-financial), earning capacities, and future financial needs. Contributions as a homemaker or caregiver are also taken into account.
2. Community Property: In states like California and Texas, all property acquired during the marriage is considered jointly owned and is typically split 50/50. Separate property, such as assets owned before marriage or received as gifts or inheritance, is excluded.

Courts distinguish between marital property (acquired during the marriage) and separate property (owned before marriage or excluded by agreement) when dividing property. They also consider economic misconduct, such as hiding or wasting assets.

Why Does Florida Not Utilize Community Property?

Florida does not use the community property system for dividing marital property in divorce because equitable distribution seeks to divide assets fairly, which may not always mean equally. This system allows courts to consider various previously named factors that community property law ignores.

The equitable distribution model offers flexibility. It allows judges to adjust decisions based on the circumstances of the parties in each case. This is better than sticking to a strict equal split. This method is common across most states in the U.S.

What is Interim Partial Distribution?

Interim partial distribution in the dissolution of marriage refers to a legal process where a court may distribute certain assets to one or both parties before the final divorce settlement is reached. This is typically done when there is a showing of good cause, such as financial need or to prevent the dissipation of assets. A party must file a motion to request this type of distribution.

Schedule a Meeting With a Divorce Attorney For Equitable Distribution in Florida

What is an equitable distribution in your divorce? That’s what we’re here to help determine. At Untying the Knot, our team is ready to help you understand your rights and work towards a fair division of assets and debts. Contact us today to discuss your case and learn more about how we can support you through the equitable distribution process.

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