Equitable Distribution / Asset Settlement

“Equitable distribution” is defined as how a couple divides their property and debts in a divorce. Florida law requires an equitable division, and in most cases, “equitable” means “equal.”

Ian C. Hurley will work with your best interests in mind to ensure the courts distribute all assets in a fair and equitable way.

Before dividing their assets, a couple must determine if either spouse owns any of the property separately. This includes assets owned before the marriage or received as a gift during the marriage.

Separate property is not considered when dividing assets in a divorce. They remain with the spouse who owns it.

Separate property may include:

  • Assets and debts a couple defines as separate property in a valid written agreement such as a premarital agreement
  • Income from separate property, unless the spouses have treated the income as marital property or “commingling” it with marital property
  • Items exchanged for or purchased with separate property

Separate property can be converted into marital property by changing the title into a form of joint ownership, making a gift to the other spouse. However, convincing a court to consider certain joint properties as separate isn’t easy.

Florida considers marital property to be assets and debts either spouse acquired during the marriage. Unless there is a valid written agreement stating otherwise, the property or debt is only recorded in one spouse’s name.

Assets and Liabilities

Assets acquired and liabilities incurred during the marriage, individually or jointly may include:

  • Money
  • Property
  • Retirement accounts, deferred compensation, or profit-sharing
  • The increase in value of a property due to the contribution of marital funds or the efforts of either spouse, such as in the case of maintaining a home, building a business

Marital property can be divided by the couple or with a mediator’s help.  If a couple can’t reach an agreement, a judge or arbitrator will make a decision.

Factors that go into the decision include:

  • How long the marriage lasted
  • The financial status of each spouse
  • Who, if anyone, will continue to live in the couple’s home
  • Each spouse’s financial contributions during the marriage
  • A spouse’s contribution as a parent or homemaker
  • Whether a spouse interrupted their profession or education during the marriage
  • If one spouse was an integral part of the other spouse’s education or career success
  • The debts and liabilities of each spouse
  • If assets were intentionally wasted or destroyed after filing for divorce petition or 2 years prior to filing
  • The difficulty involved in dividing certain assets

Generally, debt is divided equally between spouses. Making payments on the debt is assigned to one of the two spouses.  But the court does take all factors into consideration and may divide debt unequally, such as credit card debt when they deem it the fair thing to do.