August 29, 2022
In Florida, marital property is any asset acquired by either partner during the marriage. It includes both assets and debts. Generally, marital property is divided equally between the spouses in a divorce. However, there are some exceptions to this rule.
In a divorce, the judge will look at all marital property and divide it equally between the two parties. However, there are some things that the court cannot divide, such as non-marital property.
In a high asset separation, spouses must determine what property is marital and what is separate. Florida law guides how to divide assets, but the court has the final say. According to the 61.075 statutes, the following are considered marital property.
Property Acquired during the Marriage
Assets acquired after the wedding day are considered marital property, regardless of who purchased them or whose name is on the title. It includes things like houses, cars, and investment income.
If an asset was bought during the marriage, it is most likely considered marital property. However, sometimes an investment is bought with money acquired before marriage, which is regarded as a separate asset.
Asset Appreciation and Enhancement
Suppose an asset that one spouse owned before the marriage increases in value during the marriage. The difference in value may be considered marital property. This appreciation can happen if the asset is improved with marital funds or through the efforts of either spouse.
If one spouse purchases a house before marriage, that spouse’s name appears on the mortgage and title of the house. The house is considered separate property belonging only to the purchasing spouse. If both spouses make improvements to the home during the marriage, the house’s increased value (the “enhancement”) would be considered marital property.
Spousal Gift
When one spouse gives a gift to the other, it is still considered a part of the marital property because the courts want to ensure an equal distribution of assets between both spouses. It can be seen as unfair to the spouse who received the gift, but it is done to ensure fairness overall.
The law prevents one spouse from receiving a significant asset, like a car, while the other spouse is left with nothing. The law still sees it as marital property if the vehicle is purchased with joint money or put in the wife’s name. The wife may be able to keep the car, but only if some other asset offsets the vehicle’s value.
Retirement Benefits
When a married couple saves for retirement, they usually do so, intending to continue to live together in retirement. However, if the couple gets divorced, any retirement savings are considered part of the marital property and will be divided between the two spouses. It is to ensure that both spouses have some retirement savings, even if only one of them contributed to the account.
Retirement benefits, rights, and funds that have not yet accrued value during the marriage are non-marital property. These items include 401(k) contributions that have not yet been vested or pensions that have not yet begun to pay out.
Conclusion
Marital property in Florida is any property acquired by either spouse during the marriage. It includes both real property (e.g., homes, land) and personal property (e.g., vehicles, furniture, jewelry). Florida is an equitable distribution state, which means that the court will divide marital property fairly and honestly, taking into account several factors such as each spouse’s contribution to the marriage and each spouse’s need for the property.
If you are in the process of separating, you might have questions about your assets. If so, kindly contact Dorsey Law JAX. We will help you through these difficult circumstances and ensure your rights are protected, so book a consultation now!
