A Seven-Step Analysis of Equitable Distribution in Florida Part 1: Classification and Valuation of Marital Property

In a divorce case in Florida, the court has to divide the things the couple owns. First, they decide which things were bought or owed before a certain date (like the day they got married) and which were bought or owed after that date. Then, they figure out the value of everything. After that, they split the things up, trying to make it fair for both people. If there’s a good reason, they might give more of some things to one person. They have to explain why they did that in writing. This article talks about the steps a court goes through when a married couple is getting divorced. The first part covers figuring out what assets and debts belong to each person and how much they’re worth. The second part covers how those assets and debts will be split between the couple. It also looks at whether one person will need to make regular payments to the other after the divorce. Step 1: First, the court needs to figure out the start and end date of the marriage to determine when assets and liabilities were acquired. The end date can be tricky, but the law provides some guidelines to help.

Step 2: Once the court knows the start and end date of the marriage, it can sort through the couple’s assets and debts. Only the things acquired during the marriage can be divided, while things from before or after the marriage stay separate. The law has some specific rules for how to classify different types of property. In Florida, when a couple holds property together, it is usually considered marital property, even if one person used their own money to buy it. This means that if the couple gets divorced, the property will be divided between them. It’s up to the person who thinks the property should be considered separate, or nonmarital, to prove that it was not meant to be a gift. This can be difficult to do, but it is possible. Some courts have applied this rule to personal property as well, like money used in a joint business venture. Overall, it can be tough to prove that property is not marital, but there are cases where it has been done. In Florida, assets and liabilities acquired during a marriage are usually considered marital property, even if they are titled in only one spouse’s name. This means they might be divided in a divorce. Even if an asset is received after a divorce is filed, it can still be considered marital property. For example, if a lawyer earns fees for work done during the marriage, those fees could be divided in a divorce, even if they are received after the divorce papers are filed. However, it can get complicated, especially with cases where the lawyer does work both before and after the divorce filing. In Florida, even intangible assets like professional goodwill can be considered marital property if they were developed during the marriage. But personal goodwill, which is separate from professional goodwill, is not considered marital property. Pension and retirement plans are considered marital property in Florida, meaning both spouses have a claim to them. However, any funds put into these plans before the marriage are considered separate property and belong to the individual that owned them before the marriage. Additionally, any assets received as a gift or inheritance during the marriage are also considered separate property and belong to the individual who received them. If you bring something into a marriage that is just yours, like money, it can still become “marital” if you mix it up with your spouse’s money. For example, if you put your money into a joint bank account with your spouse, it can be considered “marital” and not just yours anymore. This happened in the case of Amato v. Amato, where the wife’s $70,000 insurance money became marital because it was mixed with their joint money.
When married couples combine their money, it can be hard to determine what belongs to each person. If one person puts their own money into a joint account and can prove that it was always their money, then the other person would have to prove that it was a gift from them in order to claim it. If one person uses their own money to buy things for the marriage, those things become joint property. There’s also a disagreement about whether using nonmarital property to secure a loan makes it joint property. When a couple gets divorced, the value of their property is important. If one person’s property increases in value because of their own efforts or because the other person helped, that increase is considered a marital asset and is subject to distribution. This also applies if marital funds are used to pay off a mortgage on nonmarital property. If one person’s nonmarital stock goes up in value because of the other person’s investment advice, a portion of that increase is considered a marital asset. However, it’s important to note that this decision may conflict with the decision of another court, and there is a possibility that the Florida Supreme Court may review it. When couples get divorced, any income or property they acquired during their marriage is usually split between them. However, they can also make their own agreement about how to divide everything, without the court getting involved. As long as their agreement is fair and legal, the court will usually go along with it. But the court still has to make sure the agreement was followed and that it was fair in the first place. After the court figures out what stuff the married couple owns, they have to decide on a fair date to value all of it. This can be different for different things, like if they got a separation agreement or filed for divorce. Once they have the date, they need to figure out how much everything is worth, which can be pretty straightforward for things like money and houses, but harder for things like a business. It’s important to do this so that everything can be divided fairly between the couple. When couples divorce, they need to figure out how to split up their property and money fairly. The first step is figuring out what counts as shared property and how much it’s worth. This can be complicated, especially when it comes to things like retirement savings. The court looks at each situation individually to make a fair decision. In the next part, we’ll talk about how the property and money actually get divided and when one person might get more than the other. We’ll also talk about how alimony can be used to balance things out. Together, these two parts will give a complete picture of the whole process. This text discusses Florida laws about dividing property in a divorce. It includes references to court cases to support the legal information. These cases show how the courts have made decisions about who gets what in a divorce. The text also talks about factors that can influence the division of property, such as who paid for things and how property is titled.

Source: https://www.floridabar.org/the-florida-bar-journal/a-seven-step-analysis-of-equitable-distribution-in-florida-part-1-classification-and-valuation-of-marital-property/