When couples divorce in Florida, their marital assets and debts must be divided through a process called equitable distribution. This doesn’t always mean an equal split but rather what is fair based on each party’s circumstances.
The process involves four key steps:
- Identify all assets and debts.
- Classify each as marital (shared) or non-marital (individual).
- Value the marital assets and debts.
- Distribute them equitably between the spouses.
This process is outlined in Florida Statute 61.075. Challenges often arise during these steps, such as determining whether an asset is marital or non-marital, accurately valuing assets, and deciding how they should be split. Common disputes include high-value properties, businesses, or investments. Given these complexities, it’s crucial to have a skilled family law attorney on your side to guide you through the process.
Key Points in Equitable Distribution:
- Marital vs. Non-Marital Assets: Marital assets include property, income, and debts acquired during the marriage, while non-marital assets are those owned before the marriage or obtained via gift/inheritance. Disputes may occur if an asset was partially acquired before marriage but grew in value during the marriage.
- Valuing Assets: Determining the fair market value of assets (like homes, retirement accounts, or businesses) is critical. Often, experts such as appraisers or accountants are used to assess the value accurately.
- Distributing Assets: Equitable distribution doesn’t always mean a 50/50 split. Factors considered include each spouse’s contributions to the marriage (both financial and non-financial), the duration of the marriage, and the economic circumstances of both parties after the divorce.
- Complex Issues: High-net-worth divorces often involve complex financial arrangements that need expert valuation and clear documentation. Assets like real estate, stocks, retirement accounts, and business interests can all require specialized attention to ensure fair distribution.
Why Legal Expertise Matters
The equitable distribution process can be overwhelming, especially when disagreements arise over asset classification, valuation, or allocation. A knowledgeable family law attorney ensures your rights are protected, helping to avoid costly mistakes and unnecessary stress. If you’re going through a divorce, consulting with an experienced attorney like Joshua Coffman can help guide you through this challenging process, ensuring that assets and debts are divided fairly.
Contact us today to schedule a consultation and learn how we can assist you through equitable distribution.
