During a divorce, your finances can take a significant hit in ways you might not expect. Aside from navigating the emotional aspects of your divorce, it is also essential to understand how the law will divide your marital assets. After all, this crucial process will shape your financial landscape for years to come.
What is equitable distribution?
In Florida, the law follows the equitable distribution principle when dividing marital assets. This means courts will aim to distribute assets fairly. However, this does not always translate to an equal split. During this process, courts consider various factors such as your income, earning capacity and contributions to the marriage to ensure both you and your spouse receive a fair share. Understanding which of your properties qualify as marital assets and which remain separate can better prepare you for the financial implications of your divorce.
What are marital assets in Florida?
Marital assets generally include all property and debts acquired during the marriage, regardless of whose name is on the deed. If you bought a house with your spouse during the marriage, it is likely considered a marital asset. Similarly, if you earned income or contributed to a retirement account while married, the law classifies them as shared property.
What are separate assets in Florida?
Separate assets, also known as non-marital property, are those you owned before the marriage or acquired during the marriage through inheritance or gift. If you inherited a family heirloom or received a monetary gift specifically intended for you alone, the court will consider these as separate assets.
However, it is important to note that separate property can become a marital asset if you mix it with marital property. For instance, if you deposit inherited money into a joint bank account, it may lose its separate status.
Empower your next steps
Understanding the difference between marital and separate assets is crucial in ensuring your financial stability after a divorce. By approaching asset division with clarity and understanding, you pave the way for a fresh start and a newfound financial independence.