Florida Equitable Distribution
In Florida dissolution of marriage, or divorce, proceedings, all assets and debts acquired during the marriage must be equitably distributed between the parties. There is a presumption that marital assets and debts will be divided 50/50, and, in the majority of cases, this ends up being the result. Many times, however, we have a client ask about an asset or debt that is technically marital—in that it was acquired during the marriage and does not fall under any of the statutory exceptions for nonmarital property that is acquired during the marriage—but that one spouse contributed more or less to. For example, what if one spouse came into the marriage with a house worth $100,000 that they placed into joint names during the marriage. At the time of divorce, the house is now worth $200,000. What will a court do? Florida Statute 61.075 allows a court to consider these types of circumstances and decide whether one spouse should be awarded an unequal distribution of marital assets or debts.
No More “Special Equity”
Prior to 2008, a spouse could claim an entitlement to a “special equity” in a marital asset based on a greater contribution or investment of nonmarital assets into a jointly titled marital asset. Under the special equity concept, you could show, using the example above, that you invested $100,000 of your nonmarital property into a house that is now jointly titled and worth $200,000. Under that scenario, you would have been entitled to back out your nonmarital $100,000 plus half of the additional $100,000 marital equity at the time of divorce. Arguably, simple mathematics. The law has changed, however.
Unequal Distribution
Special equity was abolished in Florida in 2008 with the amendment of section 61.075, Florida Statutes. Instead, now parties in the same situation must ask the court to award them an unequal distribution. The statute sets forth a number of factors that the court can consider in determining whether an unequal distribution is warranted. The law is muddy, however, because there is a strong presumption in Florida that jointly titled assets are marital. Courts have generally been reluctant to award anything other than a 50/50 equitable distribution of marital assets and debts. The strength of the argument for unequal distribution will greatly depend on the facts of each case, and a party making such a claim has a high burden to overcome. If you think that there are assets or debts in your divorce that perhaps should not be divided 50/50, it is important to discuss your specific case with a knowledgeable Florida divorce attorney.
Sarasota Divorce Attorney
If you have questions about your particular case, please call Loftus Law to schedule a consultation with an experienced Sarasota divorce attorney. Each unequal distribution claim is very fact-intensive and specific to each case. At your consultation, we will discuss the legal options specific to your circumstances and answer whatever questions you may have.