Equitable Distribution F.A.Q.
I OWNED MY HOME FOR 15 YEARS PRIOR TO MEETING AND MARRYING MY CURRENT SPOUSE. WE HAVE BEEN MARRIED NOW FOR 15 YEARS AND I JUST PAID OFF THE 30 YEAR MORTGAGE ON THE HOME, IF WE DIVORCE IS MY SPOUSE ENTILTED TO AN EQUITIBLE SHARE OF MY HOME?
Yes, and he or she is entitled to receive more now than she or he would have been entitled to prior to September of 2010. Prior to that date, your spouse would have been entitled to receive 50% of the amount that the mortgage was reduced by during the time of the marriage. As an example: assuming you had originally incurred a mortgage of $100,000 at the time you purchased the home and at the time of your marriage you had paid the mortgage down to $50,000. As you indicated you just recently paid that mortgage off so we know that you reduced the mortgage by $50,000 during the marriage. As such, under prior Florida law your spouse would have been entitled to receive $25,000 as and for his or her equitable share of the home.
However, the Florida Supreme Court case of Kaaa vs. Kaaa change the prior law and added in an additional calculation that may have increased the amount of equitable distribution your spouse is now entitled to from the home. More specifically your spouse is now also entitled to receive 50% of the increased value of the home due to the home’s increased market value (passive increased value) over the span of the marriage. As an example: lets assume that on the date of your marriage the home had a market value of $200,000 and on the date you filed your Petition for Dissolution of Marriage with the court your home had a market value of $300,000, assuming the same facts from the previous example above, your spouse would now be entitled to receive an equitable distribution from the home equal to $50,000 or in other words 50% of the home’s increased market value over the span of the marriage.
DURING MY MARRIAGE I PURCHASED AN INVESTESMENT PROPERTY THAT WAS TITLED SOLELY IN MY NAME AND PAID FOR SOLEY FROM MY INCOME FROM WORK, IS MY SPOUSE ENTITLED TO RECEIVE ANY SHARE OF THAT PROPERTY OR VALUE OF THE PROPERTY?
Yes, unless you and your spouse have a written agreement stating otherwise any income you realize from employment during the marriage is marital income and any asset obtained with that income, regardless of how it is titled, is a marital asset which is assumed to be owed by each spouse equally.
MY SPOUSE AND I ARE IN THE MIDDLE OF A DIVORCE AND I JUST LEARNED THAT MY SPOUSE HAS BEEN RUNNING UP CREDIT CARD DEBT ON CARDS THAT ARE IN HIS NAME ONLY AND OF WHICH I WAS NOT AWARE, DO I HAVE ANY RESPONSIBILITY FOR THAT DEBT?
Maybe, as a general rule any debt obtained during the marriage will be considered a marital debt for which the court will hold each party 50% liable for. There are certain exceptions to this rule, however, such as where it is shown that the particular debt in question is shown to be marital waste. An example of such a debt would be debt incurred for gambling, illicit drug use or for funds spent on a paramour of one of the spouses that the other spouse had no knowledge of.
DURING MY MARRIAGE I RECEIVED AN INHERITANCE FROM A RELATIVE, IS MY SPOUSE ENETITLED TO RECEIVE ANY OF THAT INHERITANCE THROUGH EQUITIBLE DISTRIBUTION IF WE DIVORCE?
Not generally no, however, if the money you received from the inheritance was deposited into savings accounts or other financial accounts that other marital funds where deposited into and also withdrawn from to pay marital debts and/or expenses the inheritance money may have become comingled with marital assets to the extent that it has lost its non-marital status thereby allowing your spouse to claim a marital interest in the money. The best way to protect such money is to deposit it into a separate account from other accounts and make no deposits to that account that would consist of marital funds.
IS MY ENGAGEMENT RING MARITAL PROPERTY?
Generally no, it is generally held that an engagement ring is a premarital gift made upon the implied condition that a marriage ensue.
I HAVE BEEN SELF EMPLOYED AND HAVE OWNED MY OWN BUSINESS FOR THE PAST 20 YEARS 10 OF WHICH I HAVE BEEN MARRIED. IF I DIVORCE MY SPOUSE DOES HE HAVE ANY EQUITIBLE INTEREST IN MY BUSINESS?
Yes, unless there is a written agreement stating otherwise, and assuming the business has increased in value over the 10 years you have been married your spouse would be entitled to receive 50% of the increased value of the business. This is a result of the marital efforts you contributed to the business during the 10 years of marriage.
AT THE TIME I MARRIED MY SPOUSE, I HAD A RETIREMENT ACCOUNT WITH A VESTED BALANCE OF $60,000. DURING THE MARRIAGE, MY EMPLOYER AND I CONTINUED TO MAKE CONTRIBUTIONS INTO THE RETIREMENT ACCOUNT AND IT NOW HAS A BALANCE OF $80,000. IS MY SPOUSE ENTITLED TO RECEIVE ANY PORTION OF MY RETIREMENT ACCOUNT THROUGH EQUITABLE DISTRIBUTION?
Yes, your spouse would be entitled to receive 50% of all contributions made into the account from the date you were married until the date you filed the Petition for Dissolution of Marriage together with any investment earnings and losses attributable to the contributions made during the marriage.
Yes, and he or she is entitled to receive more now than she or he would have been entitled to prior to September of 2010. Prior to that date, your spouse would have been entitled to receive 50% of the amount that the mortgage was reduced by during the time of the marriage. As an example: assuming you had originally incurred a mortgage of $100,000 at the time you purchased the home and at the time of your marriage you had paid the mortgage down to $50,000. As you indicated you just recently paid that mortgage off so we know that you reduced the mortgage by $50,000 during the marriage. As such, under prior Florida law your spouse would have been entitled to receive $25,000 as and for his or her equitable share of the home.
However, the Florida Supreme Court case of Kaaa vs. Kaaa change the prior law and added in an additional calculation that may have increased the amount of equitable distribution your spouse is now entitled to from the home. More specifically your spouse is now also entitled to receive 50% of the increased value of the home due to the home’s increased market value (passive increased value) over the span of the marriage. As an example: lets assume that on the date of your marriage the home had a market value of $200,000 and on the date you filed your Petition for Dissolution of Marriage with the court your home had a market value of $300,000, assuming the same facts from the previous example above, your spouse would now be entitled to receive an equitable distribution from the home equal to $50,000 or in other words 50% of the home’s increased market value over the span of the marriage.
DURING MY MARRIAGE I PURCHASED AN INVESTESMENT PROPERTY THAT WAS TITLED SOLELY IN MY NAME AND PAID FOR SOLEY FROM MY INCOME FROM WORK, IS MY SPOUSE ENTITLED TO RECEIVE ANY SHARE OF THAT PROPERTY OR VALUE OF THE PROPERTY?
Yes, unless you and your spouse have a written agreement stating otherwise any income you realize from employment during the marriage is marital income and any asset obtained with that income, regardless of how it is titled, is a marital asset which is assumed to be owed by each spouse equally.
MY SPOUSE AND I ARE IN THE MIDDLE OF A DIVORCE AND I JUST LEARNED THAT MY SPOUSE HAS BEEN RUNNING UP CREDIT CARD DEBT ON CARDS THAT ARE IN HIS NAME ONLY AND OF WHICH I WAS NOT AWARE, DO I HAVE ANY RESPONSIBILITY FOR THAT DEBT?
Maybe, as a general rule any debt obtained during the marriage will be considered a marital debt for which the court will hold each party 50% liable for. There are certain exceptions to this rule, however, such as where it is shown that the particular debt in question is shown to be marital waste. An example of such a debt would be debt incurred for gambling, illicit drug use or for funds spent on a paramour of one of the spouses that the other spouse had no knowledge of.
DURING MY MARRIAGE I RECEIVED AN INHERITANCE FROM A RELATIVE, IS MY SPOUSE ENETITLED TO RECEIVE ANY OF THAT INHERITANCE THROUGH EQUITIBLE DISTRIBUTION IF WE DIVORCE?
Not generally no, however, if the money you received from the inheritance was deposited into savings accounts or other financial accounts that other marital funds where deposited into and also withdrawn from to pay marital debts and/or expenses the inheritance money may have become comingled with marital assets to the extent that it has lost its non-marital status thereby allowing your spouse to claim a marital interest in the money. The best way to protect such money is to deposit it into a separate account from other accounts and make no deposits to that account that would consist of marital funds.
IS MY ENGAGEMENT RING MARITAL PROPERTY?
Generally no, it is generally held that an engagement ring is a premarital gift made upon the implied condition that a marriage ensue.
I HAVE BEEN SELF EMPLOYED AND HAVE OWNED MY OWN BUSINESS FOR THE PAST 20 YEARS 10 OF WHICH I HAVE BEEN MARRIED. IF I DIVORCE MY SPOUSE DOES HE HAVE ANY EQUITIBLE INTEREST IN MY BUSINESS?
Yes, unless there is a written agreement stating otherwise, and assuming the business has increased in value over the 10 years you have been married your spouse would be entitled to receive 50% of the increased value of the business. This is a result of the marital efforts you contributed to the business during the 10 years of marriage.
AT THE TIME I MARRIED MY SPOUSE, I HAD A RETIREMENT ACCOUNT WITH A VESTED BALANCE OF $60,000. DURING THE MARRIAGE, MY EMPLOYER AND I CONTINUED TO MAKE CONTRIBUTIONS INTO THE RETIREMENT ACCOUNT AND IT NOW HAS A BALANCE OF $80,000. IS MY SPOUSE ENTITLED TO RECEIVE ANY PORTION OF MY RETIREMENT ACCOUNT THROUGH EQUITABLE DISTRIBUTION?
Yes, your spouse would be entitled to receive 50% of all contributions made into the account from the date you were married until the date you filed the Petition for Dissolution of Marriage together with any investment earnings and losses attributable to the contributions made during the marriage.