At our Tampa divorce law firm, many clients ask us, “Can you divorce without splitting assets in Florida?” This question opens up a complicated dialogue about dividing marital property and legal options regarding equitable property division in Florida.
Going through a divorce without splitting assets is generally not an option in Florida because it is an equitable distribution state. This means that the court will divide marital assets fairly. However marital property divided fairly does not mean the marital estate is divided equally during divorce proceedings. When the time comes to divide assets and marital debts, it’s important for divorcing spouses to understand which is personal property (assets owned by one ex-spouse or the other spouse) and which is community property (joint ownership).
If you’d like to pursue a divorce decree and are concerned about asset division, an experienced Tampa divorce planning attorney at Quinn & Lynch is here to guide you through the process and protect your interests. Call (813) 223-7739 or contact us online today.
Marital Assets vs Separate Property in a Florida Divorce
Understanding the difference between marital and separate assets is important for those needing to split assets in a Florida divorce. Separate property vs community property plays a significant role in how each particular asset is divided since Florida is an equitable distribution state.
Marital or community property refers to assets acquired during the marriage. For example, a family home purchased during the marriage or any marital debts are considered marital property, subject to equitable distribution rules. This means the marital estate is divided fairly but not always equally.
Separate property or personal property, on the other hand, includes separate assets that one spouse owned prior to the marriage or personal property the spouse acquired individually through inheritance or gift. Separate property that one spouse owns individually is not subject to division in a Florida divorce.
This brings us to the common question: is Florida a 50/50 divorce state? While Florida is not a strict 50/50 state, Florida law aims for a fair division of marital assets, which may or may not result in an equal split.
How to Split Assets During a Divorce in Florida
During divorce proceedings in Florida, the process of dividing property follows the principle of equitable property division. This means that marital assets, including marital funds and debts, are divided in a way that is fair, though not necessarily equal.
To understand how marital assets are divided in a divorce, it’s important to recognize that Florida law considers all assets and debts acquired during the marriage as marital or community property. To ensure an equitable division of assets for both parties involved, the court takes into account what each spouse contributed, their economic circumstances, and the duration of the marriage.
Florida Equitable Distribution Rules
Each state has its own rules about dividing the marital estate in a divorce settlement. Typically, they either fall under community property laws or equitable distribution laws.
Community property states mandate that most property acquired during a marriage is divided equally between spouses in a divorce, reflecting the concept of joint ownership. States like Arizona, California, Idaho, Nevada, New Mexico, Texas, Washington, Wisconsin, and Louisiana operate under these community property laws.
However, Florida is not a community property state. Instead, Florida follows equitable distribution rules governed by Florida Statute 61.075.
Under this statute, the court must identify, classify, and value all marital and non-marital property before dividing it equitably between the spouses. Equitable distribution does not always mean the assets are divided equally in a 50/50 split, but rather a fair division based on factors such as the duration of the marriage, each spouse’s financial situation, contributions to the marriage (including homemaking and child support and rearing), and any interruptions to personal careers or educational opportunities.
List of Things to Split in a Divorce
Community assets refer to any property, income, or debts either spouse acquired during the marriage. Unless one ex-spouse owned the property before marriage, these assets are considered under “joint ownership” in Florida, regardless of whose name is on the titles, bank accounts, investment accounts, etc. Florida law mandates the equitable property division of these assets, meaning they will be divided fairly between the divorcing spouses, but the distribution may not be totally equal.
Here’s a list of marital or community assets that may be split in a Florida divorce:
- Bank Accounts: Joint checking and savings accounts.
- Retirement Accounts: 401(k) plans, IRAs, and pensions accumulated during the marriage.
- Investment Accounts: Stocks, bonds, mutual funds, and other forms of investment.
- Liabilities Assets: Debts such as mortgages, car loans, and credit card debts tied to marital property.
- Benefits: Military benefits, Social Security benefits, and retirement benefits.
- Other Assets: Real estate properties, vehicles, personal belongings, and business interests acquired during the marriage.
What Assets Cannot Be Split in a Divorce in Florida?
Separate assets refer to property or assets that are not subject to division between spouses because they are considered individually owned by one spouse. These assets are typically acquired before the marriage, through inheritance, as gifts, or as specified in a prenuptial or postnuptial agreement. These assets remain the spouse’s own separate property and are not split during divorce proceedings.
Here are examples of separate assets that cannot be split in a Florida divorce:
- Property Owned Before the Marriage: Assets that one spouse owns prior to the marriage. This includes real estate, vehicles, personal belongings, or any other valuable items.
- Inheritances: Assets inherited by one spouse, whether received before or during the marriage, are considered separate property. For example, if a spouse inherits money or property from a relative and keeps it in a separate account, it remains non-marital.
- Gifts: Gifts received by one spouse from a third party, such as jewelry, personal items, or money. As long as these gifts are not commingled with the marital estate, they remain the recipient’s separate property.
- Personal Injury Settlements: Compensation received by one spouse for personal injuries is typically considered separate property. This includes damages for pain and suffering, but not compensation for lost wages or medical expenses if those were covered by marital funds.
- Postnuptial or Prenuptial Agreements: A valid prenuptial agreement or postnuptial agreement can designate certain assets as separate property. These agreements allow spouses to outline which assets will remain individual property and not be subject to division in the event of a divorce.
- Property Excluded by Agreement: Similar to a postnuptial or prenuptial agreement, spouses can enter into written agreements during the marriage that exclude a particular asset. These agreements can protect specific property from being considered marital property, ensuring it remains with the original owner.
- Income from Non-Marital Assets: Any income generated from non-marital assets is also typically considered separate, provided it is kept apart from marital funds.
What Happens to Property Acquired After Separation But Before Divorce in Florida?
When dividing marital property in Florida, the date that both parties enter a separation agreement is important. According to Florida Statute 61.075, any property acquired after the separation date would not be considered part of the marital estate or be subject to equitable division.
During the property division process, it’s advisable to consult a Tampa asset protection attorney. Our skilled attorneys can help ensure that your rights are protected and that any significant assets are handled appropriately throughout the process.
Selling Property Before Divorce Settlement in Florida
Selling property before a divorce settlement is a prime example of what not to do during divorce. Marital assets, including real estate, should not be sold or transferred without the consent of both spouses or a court order while the divorce is pending. Unauthorized sales could be viewed as an attempt to undermine the divorce agreement by hiding or diminishing the marital estate, which could result in legal penalties.
If you’re considering selling property before the divorce is finalized, it’s essential to consult with your divorce attorney and secure court approval to ensure the sale is handled properly.
Removing Marital Property Before Divorce
In Florida, removing marital property before a divorce judgment is finalized can lead to legal complications.
Marital property is subject to equitable asset distribution, meaning it must be fairly divided between both spouses. If one spouse removes or hides marital property without consent from the other spouse or without court approval, it can be seen as an attempt to unfairly influence the division of assets. This action could result in penalties or an unfavorable outcome in the divorce settlement.
Penalty for Hiding Assets in Divorce
Hiding assets during a divorce is considered a serious offense. If a spouse is found to have intentionally concealed assets to avoid equitable distribution, the court may impose certain penalties. These can include awarding a larger share of the hidden assets to the other spouse, ordering the payment of the other spouse’s legal fees, and, in some cases, holding the offending spouse in contempt of court.
How a Tampa Property Division Attorney Can Help
While most divorcing couples cannot divorce without splitting assets in a Florida divorce, a Tampa property division attorney from our law firm can help divide assets fairly during divorce proceedings, ensuring the final divorce agreement is fair. Whether you’re dealing with an uncontested divorce or facing complicated negotiations with your ex-spouse, our attorneys are skilled in handling the challenges of having your property divided. We also understand the importance of considering child custody and child support arrangements when dividing assets, ensuring that all aspects of your family’s future are secure.
Tax Implications of Asset Distribution
When you go through a divorce in Florida, dividing your assets can have certain tax implications. For example, transferring property or selling assets to split them might result in capital gains taxes, meaning you could owe money to the IRS based on any profit made from the sale. Retirement accounts, like 401(k)s, can also be tricky because taking money out early to divide it could lead to taxes and penalties.
It’s important to consider these tax implications when deciding how to divide your assets so that you don’t face unexpected financial surprises after your divorce is finalized.
Marital Property Valuation
Marital property valuation is the process of determining the present value of all assets acquired during a marriage, which is essential when dividing property in a divorce. This includes everything from the family home and cars to bank accounts and business interests.
Marital property valuation is especially important when dealing with more complicated divorce finances and investments. For example, cryptocurrency in divorce will be more complicated than the typical divorce settlement in Florida because it involves determining the current value of digital assets like cryptocurrency, which can fluctuate rapidly.
Often, professionals like appraisers or financial experts are brought in to assess the value of complicated assets, ensuring that both spouses receive their fair share based on the property’s present value at the time of the divorce.
Family Home During Divorce
Home equity in divorce is a major factor, especially when determining the fate of the family home. A real estate divorce specialist can provide guidance on valuing the home and determining how to have the marital property divided.
If the divorcing spouses cannot agree on how to handle the home, the judge decides, considering factors like child custody and the overall division of marital property.
The outcome may involve selling the home and splitting the proceeds or awarding the property to one spouse, with the goal of ensuring a fair and balanced distribution that supports the best interests of the family.
Business Interests
If you are a business owner going through divorce proceedings, you might wonder, “How is an LLC treated in a divorce?” In Florida, business interests, including LLCs, are subject to division as part of the marital assets in the divorce settlement. How an LLC is treated in the divorce agreement depends on whether the business was started before the marriage or if it grew in value due to marital efforts.
If the LLC is considered marital property, its value will be assessed and potentially divided between the spouses. With joint ownership, the division could involve one spouse buying out the other’s interest, selling the business, or distributing other assets to balance the division.
Retirement Accounts
In a “grey divorce,” where couples divorce later in life or divorce after retirement in Florida, retirement accounts often become a focal point of asset division. Splitting these accounts can be complicated, as they may represent a significant portion of the couple’s security with respect to their financial situation.
Failing to properly account for the division of retirement assets can lead to grey divorce regrets, where one or both parties may find themselves financially strained during their retirement years. It’s crucial to carefully evaluate and divide this portion of the marital estate to ensure that divorcing spouses can maintain their standard of living post-divorce and avoid any long-term financial hardships.
Call Tampa Divorce Attorneys Quinn & Lynch
If you’re facing a challenging and high-stakes divorce, especially if you’re a divorcing couple with significant assets, having the right legal support is essential. While you typically cannot divorce without splitting assets in Florida, our experienced Tampa high-asset divorce attorney team will protect your interests and ensure a fair asset division in the divorce judgment. We understand the complications of equitable property division in Florida and will work tirelessly to secure the best possible outcome for you.
Take the first step toward securing your financial future. Call 813-223-7739 or contact us online to schedule a consultation with a skilled Tampa divorce lawyer today.
