Dividing Property, Assets and Liabilities in a Divorce
How Property Division Works in Divorce
When you have built a life and marriage together, there is an accumulation of property that will need to be divided up with the dissolution of the relationship. In the state of Florida, all assets and liabilities are distributed between the parties based on “equitable distribution”. This means that marital property is divided equitably or fairly, not necessarily equally.
Two types of property will be considered when deciding upon distribution:
- – Nonmarital property
Generally includes assets obtained before marriage such as an inheritance, gifts from people other than your spouse, and any property/debt.
- – Marital property
Generally includes assets or liabilities obtained during marriage such as cars, houses, retirement benefits (pensions and 401k plans), business interests, stocks, bonds, bank accounts, personal property, mortgage debts, student loans, credit cards and the enhanced value of a nonmarital asset.
Generally, assets or liabilities that are nonmarital are not subject to equitable distribution. It is the marital property that the two parties, or courts, will divide out with fair distribution. If the parties are unable to agree on a division of the assets and debts, the court will determine the equitable distribution based on various factors including:
- – the financial contribution of each spouse to the marriage
- – the duration of the marriage
- – the economic circumstances of each spouse
- – the debt accumulation by each respective spouse
- – the best interest of children regarding living in the marital home
The Factors in Florida Statute Section 61.075 will be considered by the court if parties cannot agree on division. Collaborative divorce can be a helpful tool for dividing property with equitable distribution and sense of fairness to all sides involved. Chris LaFrance is a certified Collaborative Divorce Lawyer. Call for free consultation. #TampaDivorceLawyer #SeekFairness