Understanding the typical divorce settlement in Florida can provide some clarity. For those going through a divorce in Florida, the division of marital assets, spousal support, and child support are key components of a divorce settlement. Knowing what to expect with divorce finances can help you prepare for in your divorce case.
Typical Florida divorce settlements follow the equitable distribution standard for property division. This means marital property is divided fairly, but not necessarily divided equally. Under Florida law, in addition to equitable property division during a divorce, in Florida, courts consider spousal support and child support to ensure fair financial support, especially in child custody cases.
If you’re facing a divorce in Florida, the experienced legal team at Quinn & Lynch, P.A. can help you through every step. We can help through the process of property division, time sharing and parental responsibility, child support, separating marital property from separate property in property diviction, from filing the divorce petition to experienced legal representation in court.
Our Tampa property division attorneys work diligently to protect client interests. If you’re going through a divorce in Florida, call (813) 223-7739 to discuss your divorce case.
What to Expect in a Florida Divorce Settlement Agreement
Understanding what to expect in a Florida divorce settlement agreement can help you feel more prepared. Florida law follows the equitable property division standard for marital property and marital liabilities. During the division of marital assets and marital debts, Florida courts consider the length of the marriage, each spouse’s contributions, and economic circumstances, along with other factors. Florida law also takes this into account when determining spousal support, child support, and other financial support assessments for the divorcing couple.
For those who want to divorce without splitting assets, we cover that here: can you divorce without splitting assets in Florida?
Florida’s Equitable Distribution Standard
What is equitable distribution?
Equitable distribution is the standard used in the property division of marital assets and marital liabilities during a divorce in Florida. Unlike an equal split for marital property division, equitable distribution focuses on a fair division of marital assets and property, considering other specific circumstances rather than just having marital property equally divided, as done in equal division divorce states. The unequal division approach aims to achieve a just outcome tailored to the specific circumstances of each specific divorce in Florida.
Is Florida a 50/50 divorce state?
Florida law considers each divorce case specifically during the equitable distribution process, looking at the marriage duration, whether or not the lower-earning spouse gave up a career to assume more parental responsibility and the economic circumstances of both parties.
The goal of equitable distribution is to reach a fair property division in Florida divorce proceedings. While there may not be an equal division of marital property, Florida courts strive to ensure that the division of marital assets is just and reasonable by evaluating various factors.
Division of Marital Assets in a Florida Divorce Settlement
How are marital assets divided in Florida divorce cases?
In a divorce in Florida, marital property is divided through equitable distribution. This means that any marital asset acquired during the marriage is divided fairly, but it may not result in an equal split. Each Florida court considers factors such as marriage duration, each spouse’s contributions, and the economic circumstances of both parties to ensure that property division standards are fair for each divorce.
Non-marital assets include separate property acquired before the marriage or through inheritance. In Florida divorce proceedings, non-marital or separate property is typically excluded from the property division process.
Marital liabilities, including debts acquired during the marriage, like credit card debt, are also considered. Marital debts are subject to the same property division processes ensuring a fair but not necessarily equal split of credit card debt or other debts acquired during the marriage duration.
When dividing marital property during a divorce in Florida, the court examines various factors, as marital property includes more than valuables, in the eyes of Florida law. If a spouse dedicates significantly more time than the other to further the marriage or take on more parental responsibilities, this is considered. For this reason, Florida law provides more stay at home mom divorce rights than other states who practice equal division.
While an equal split is common, other factors can influence the final decision. Florida courts aim to achieve a fair distribution that reflects the unique aspects of each marriage.
Can You Remove Marital Property Before a Divorce in Florida?
We do not advise removing marital property before divorce in Florida. Under Florida law, marital property includes any asset acquired during the marriage, regardless of whose name is on the title. These community assets are subject to equitable distribution in almost every Florida divorce case.
If one spouse tries to claim a false market value before the divorce petition, hide or transfer a marital asset, or withdraw significant amounts from a joint bank account before the divorce process is finished, the court will view this unfavorably. Regardless of fair market value on the date of the divorce petition, the court can order its return or adjust the property division standards to account for it.
Non-marital or separate property is not subject to property division during a divorce in Florida.
To ensure a fair process, all marital property must be disclosed and cannot be removed before the divorce proceedings. Transparency helps the court achieve a fair and just division of community assets.
Assets vs Income in a Florida Divorce
In a Florida divorce, the distinction between assets and income is important. Marital assets include properties, savings, the family home, credit card balances, each spouse’s bank account, and other valuable items acquired during the marriage. These are subject to equitable distribution, which will be a fair but not necessarily equal split.
Income streams, such as salaries and business earnings, are also considered during the divorce process. They influence spousal support and child support calculations for any divorce in Florida. For example, one spouse might retain more assets if the other parent’s income is higher in parental responsibility cases in an attempt to balance financial support for the lower-earning spouse.
A Tampa asset protection attorney can help ensure fair property division.
How are Marital Assets Treated in Florida Divorces?
In Florida, divorces and marital assets are divided through equitable distribution, meaning assets are divided fairly, though not always equally divided.
Debts, including credit card balances, are also divided fairly between the divorcing couple. To prevent grossly unequal distribution, the court considers both assets and liabilities, but excludes non-marital property acquired before the marriage to help ensure fair outcomes.
How are Income Streams Treated in Florida Divorces?
In Florida, different income streams are treated uniquely when it comes to divorce property division and child support.
Income streams are a key factor in Florida divorces, impacting the division of marital funds and the determination of alimony. Both spouses’ incomes, including salaries, bonuses, and business earnings, are assessed to decide a fair distribution of financial resources. This includes self-employment income, investment income, social security benefits, retirement income, etc.
But how does this affect child support for those going through a divorce in Florida? How is child support determined in Florida?
For those with minor children who are going through a divorce in Florida, child support is calculated based on the combined income of both parents. The court considers each parent’s income, time-sharing arrangements, and the needs of the minor children for parental responsibility cases. Parental responsibilities and child custody arrangements also play a role in calculating the child support amount. This helps to ensure parental responsibility is shared fairly.
How is Home Equity Treated in a Florida Divorce?
In Florida, home equity in divorce is considered a marital asset and is subject to equitable distribution. When dividing assets for a divorce in Florida, the court assesses the current value of the family home and the remaining mortgage balance to determine the home equity. The marital or family home equity is divided between the spouses, either by selling the home and splitting the proceeds or by one spouse buying out the other’s share.
For example, if a marital home is valued at $300,000 with a remaining mortgage of $100,000, the home equity is $200,000. If split equally, each spouse would receive $100,000. A divorce petition typically includes requests for handling the marital home and its equity, making it important to address these details early. A Florida real estate divorce specialist on our legal team can assist in accurately valuing the property and facilitating the buyout or sale process to ensure a fair division.
What is a Wife Entitled to in a Divorce Settlement?
When asked, “What is a wife entitled to in a divorce in Florida?” she may receive an equitable share of marital assets, including property, savings, and retirement accounts.
Under Florida alimony law, courts consider factors like the length of the marriage and each spouse’s financial situation when awarding this form of financial support. However, a wife entitled to certain assets can be affected by a prenuptial agreement.
While prenuptial agreements can affect the division of assets and alimony for a divorce in Florida, prenuptial agreements do not affect support associated with parental responsibility and time-sharing arrangements.
Alimony and Spousal Support in a Florida Divorce
How does alimony work in Florida?
Various types of alimony in Florida are designed to provide financial support to a spouse after a divorce in Florida, including rehabilitative alimony, durational alimony, and bridge-the-gap alimony. The types of alimony in Florida serve different purposes:
- Rehabilitative Alimony: Supports a spouse while they gain education or training to become self-sufficient and is limited to 5 years.
- Durational Alimony: Offers support for a set period, usually not exceeding the length of the marriage, and not awarded to marriages less than 3 years.
- Bridge-the-Gap Alimony: Helps a spouse “bridge-the-gap” financially between the marital lifestyle to a single lifestyle. Bridge-the-gap support is limited to 2 years and is not subject to alimony modification in Florida.
As of July 2023, the Florida Senate approved bill CS/SB 1416 — Dissolution of Marriage, eliminating permanent alimony. This change means that courts can no longer award permanent alimony, which previously allowed a spouse to receive support indefinitely.
A prenuptial agreement can impact alimony decisions, as they may include terms about spousal support. Legal representation from an experienced Tampa alimony attorney can help you understand Florida alimony law and achieve fair treatment.
Divorce Settlements and Tax Implications
Divorce settlements in Florida can have significant tax implications. When dividing assets for a divorce in Florida, consider the following:
- Alimony payments are no longer tax-deductible for the payer, nor taxable for the recipient for divorces finalized after December 31, 2018.
- Transfers during a divorce in Florida are generally tax-free, but the receiving spouse assumes the original cost basis, potentially leading to capital gains taxes upon future sale.
- A QDRO allows for tax-free division of retirement accounts like 401(k)s. IRAs can be transferred without a QDRO but must follow specific rules to avoid taxes and penalties.
- Only one party can claim Florida’s homestead exemption after a divorce in Florida. Selling the family home may trigger capital gains taxes, depending on timing and value appreciation.
- Child support isn’t taxable for the recipient nor deductible for the payer.
- Legal fees are generally non-deductible, except for those related to tax advice or securing alimony, though these deductions are limited.
- The finalization date determines your tax filing status for that year, impacting rates and eligibility for credits.
If one spouse receives a large investment account, they may face taxes on dividends or capital gains, potentially creating an unequal division.
Do You Have to Pay Taxes on a 401K Divorce Settlement?
For a divorce in Florida, the division of a 401(k) can have tax implications. According to the IRS, if the settlement involves transferring part of a 401(k) to the other spouse, it can be done without immediate tax consequences using a Qualified Domestic Relations Order (QDRO).
However, if the receiving spouse withdraws funds from the 401(k) without rolling them into another retirement account, they may have to pay taxes and possibly early withdrawal penalties.
What Happens After Divorce Settlement Agreement is Signed
After a settlement agreement is signed for a divorce in Florida, several steps typically follow to finalize the divorce process:
- The agreement is submitted to the court for a judge to review and approve.
- A final judgment is issued.
- The terms are executed, involving asset transfers and time-sharing arrangements.
- You’ll update records and wills, change beneficiaries, and notify institutions.
- Legal enforcement may be required if terms are not followed.
How a Florida Divorce Attorney Can Help With Divorce Settlements
Our Florida divorce attorney team provides valuable legal representation for those going through a divorce in Florida. We address alimony, child support, time-sharing arrangements, and more, advocating for fair outcomes.
Working With a Certified Divorce Financial Analyst
A certified divorce financial analyst from Quinn & Lynch, P.A. acts as a neutral third party, offering experienced financial guidance. They help evaluate assets, manage budgets, and plan for the future, ensuring fair and informed decisions during the divorce process.
For those with substantial assets, our Tampa high-asset divorce lawyer team is particularly beneficial throughout the divorce process. We’re adept at handling complex financial situations, business valuations, and high-stakes divisions. Call (813) 223-7739 to schedule your consultation.
