Florida has an equitable distribution statute that guides property division during divorce. Under state law, spouses should reach a settlement that is fair when splitting their shared property and marital debts with one another. Some people intentionally hide property and income to manipulate the outcome of the property division process. Their conduct leaves them at risk of consequences if the courts learn about their attempt to hide assets.
Others make mistakes during disclosures, undervalue key resources and agree to concessions that leave them (or their spouses) at a disadvantage. The larger and more valuable the marital estate is, the more difficult it can be to reach an equitable arrangement for dividing property. Spouses who own businesses and real property, as well as those who invest, may struggle to accurately catalog the totality of the marital estate in the initial stages of the divorce.
Some spouses are at risk of accepting less than they deserve if they are unaware of what resources are worth or what property is truly marital. Spouses may need guidance to identify marital property, financial assistance when valuing resources and support when negotiating terms for dividing their marital estate in a reasonably fair manner.
What property is marital?
Florida law and prior court rulings clarify what assets are separate and what property is subject to equitable distribution during a divorce. Usually, the income of both spouses is marital, which means they must share those funds and any assets acquired with that money.
Assets owned before marriage, protected by a prenuptial agreement or received as either an inheritance or a gift from an outside party may be the separate property of one spouse. The spouse claiming certain assets as separate must provide financial records that prove they didn’t commingle the separate property with the marital estate or use marital income to maintain their separate assets.
Each spouse should provide a thorough inventory of their separate assets and all marital property, including estimated fair market values for specific assets. Property can fluctuate in value based on economic factors, making a valuation date and possibly professional guidance when determining what resources are worth necessary.
Spouses often need help reviewing financial disclosures, conducting neutral asset valuations for complex resources, such as family-owned businesses, and checking for signs of unreported income or improperly-valued assets. Knowing what each asset is worth is important for successful property division negotiations or a fair outcome for litigation.
Those with complex marital estates may need support ensuring they know what assets are worth and that they obtain a fair property division settlement. Seeking guidance through every stage of financial disclosure, discovery review and property division negotiations can help spouses avoid scenarios in which they agree to patently unfair terms during a divorce.