Special Equity and Unequal Distribution of Assets

In short, the legal firm and attorney involved in the case don’t matter. What’s important is that the court ruled in favor of the student and overturned the suspension for cheating. Special equity and unequal distribution are terms used in divorce cases when dividing marital assets. Special equity refers to a spouse’s vested interest in property or funds due to contributions beyond normal marital duties. Unequal distribution means dividing assets in a way that is not equal, taking into account factors such as special equity. These terms are related in that special equity can be a justification for unequal distribution of marital assets. However, in Florida, the equitable distribution statute allows for unequal distribution based on various factors, including contributions beyond normal marital responsibilities. This means that a simple request for unequal distribution may be more appropriate than invoking the concept of special equity. A special equity claim in divorce cases can be hard to prove. It’s important to show that money or property came from a nonmarital source and that it wasn’t meant as a gift. If the funds get mixed with marital funds, it can be tough to trace them back and claim them as separate property. There’s a strong presumption that property held as joint tenants with rights of survivorship is a gift to the marriage, making it hard to prove otherwise. This means that even if you put your own money into a joint purchase, it might still be considered marital property. It’s tough to overcome this presumption, and there’s a high burden of proof. Even in cases where it seems like one spouse should get credit for contributing nonmarital funds, the court may still rule that a gift was intended. In a divorce, the court usually starts with the idea that marital assets should be split equally between the spouses. However, there are some cases where the court may decide to divide things unevenly, based on all the relevant factors. This has only happened in a few cases. For example, in one case, a husband put a $900,000 home in both of their names right after they got married, but the court still gave the house entirely to the husband. In another case, a husband put his premarital home in both of their names and argued that the split of assets was unfair, and the court agreed. In another case, a short marriage and a husband’s actions led the court to decide to divide things unequally. Overall, it’s pretty rare for a court to decide that things should be split unequally in a divorce. The term “special equity” in family law is outdated and confusing. It’s used to request an unequal distribution of marital assets. Instead, focus on whether an asset is marital or nonmarital and whether there’s a valid argument for unequal distribution. The law supports this approach. The wife in the case contributed a lot to her husband’s business, but was caught cheating. The court couldn’t give her alimony, but they did give her a special share of the business and property. The court looks at many factors when dividing property in a divorce, and the special share is permanent and can’t be changed. Several cases have shown that it’s hard to prove that someone deserves a special share. Victoria M. Ho and Rebecca Y. Zung are lawyers who specialize in family law. They work at a law firm in Naples, Florida. They are dedicated to serving the public and improving the justice system.

Source: https://www.floridabar.org/the-florida-bar-journal/special-equity-and-unequal-distribution-of-assets/