At Beller Law, PL, we educate our clients about Florida’s divorce laws and how they apply to their unique situations. We are committed to helping families achieve practical and long-term solutions and avoid regrets about all the things you later wished were included in a divorce decree. We provide clear guidance and effective legal action to protect your rights and future. Contact us today to schedule a consultation.
Divorce-Related Asset Distribution Under Florida Law
Florida law requires courts to divide marital assets and liabilities equitably. Equitable division means distributing assets and liabilities fairly, not necessarily equally.
Marital and Nonmarital Property in Florida
Marital property generally includes all property either spouse acquired during the marriage that is not nonmarital. Nonmarital property includes:
- Assets a spouse acquired before marriage or after separation,
- Gifts to only one spouse,
- Assets acquired through inheritance, and
- Income and property earned or obtained from nonmarital assets.
In Florida, marital assets include the following:
- Enhancements to the value of nonmarital assets;
- Paydown of the principal of a note or mortgage secured by nonmarital real estate;
- Gifts from one spouse to the other;
- The vested and nonvested benefits, rights, and funds either spouse accrued during the marriage; and
- Interests in closely held businesses.
Vested and nonvested benefits include those earned through insurance, retirement programs, profit-sharing, annuities, and deferred compensation.
Factors in Asset Division
To determine how to divide marital assets, the court considers factors like:
- Each spouse’s contributions to the marriage, including caring for children;
- Contributions one spouse made to the other’s career or educational pursuits, especially those that negatively impact the contributor’s earning capacity;
- Contributions by the spouses toward acquiring or improving assets owned by either spouse;
- The economic circumstances of each spouse;
- The length of the marriage;
- Interruptions to one spouse’s career or education in support of the marriage;
- The desirability of retaining the family home for the benefit of the children;
- The desirability of keeping business assets free from interference or split ownership; and
- Whether a spouse intentionally reduced the value of assets through dissipation, waste, or destruction.
Courts divide debts and liabilities incurred during the marriage, too.
Reaching a Divorce Agreement
While Florida law determines how courts divide property, only some couples rely on time-consuming and costly trials to divide their assets. Usually, couples reach a divorce agreement through negotiation or mediation. Divorce agreements often involve compromise, with each spouse giving up certain assets in exchange for others that they deem more valuable or important.
To begin the property division negotiation process, spouses must identify and disclose their assets. Among the most important things to consider in a divorce agreement is whether each spouse has provided a complete list of assets and liabilities.
Legal Consequences of Overlooking Assets
To understand the implications of things often overlooked in divorce agreements, you should know the potential consequences of overlooking assets. Intentional or not, failing to disclose assets frequently results in unfair asset division. Plus, one spouse concealing or overlooking assets may justify the other reopening the divorce agreement in court months or years later.
Commonly Overlooked Assets
Couples frequently overlook several types of assets during divorce negotiations. Identifying and addressing these assets early in the process can save time and money, help ensure you divide assets fairly, and provide a clean break. Below, we explore some of the things often overlooked in divorce agreements.
Stock Options and Equity
Spouses may overlook stock options or equity compensation packages, which could hold significant value. If one spouse has stock options or restricted stock units (RSUs) as compensation, the divorce agreement should account for these assets.
Business Interests
For couples with one or both spouses owning a business, the business’s value can be a critical asset to consider. It is essential to carefully assess the value of the business, including increases in value and intangible assets like client lists, goodwill, and intellectual property. Dividing business interests can be particularly complex if both spouses have participated in business operations.
Intellectual Property
Intellectual property includes less tangible assets like:
- Patents,
- Trademarks,
- Copyrights, and
- Trade secrets.
These assets are easy to overlook but can have substantial value, especially if they are associated with a business or personal invention.
Life Insurance Policies
While life insurance is typically associated with death benefits, many policies accumulate cash value over time. This cash value should be among the assets couples divide during divorce. Additionally, beneficiary designations may need to be updated post-divorce.
Credit Card Points
When reviewing credit cards, we usually focus on any debt that is owed. However, many credit cards come with benefits that include points, cash back, airline miles, or hotel credits, to name a few. These benefits are marital property and should be allocated between the couples or considered in the overall values of property and debts to be divided.
Unused Vacation Time, Sick Leave, or Health Savings Benefits
Employees often accumulate vacation days, sick leave, paid time off, or health savings account funds. These benefits can accumulate significant value, especially for high-level employees or those with long tenures. Since these assets are marital property, you should include them in your divorce agreement.
Digital Assets
In today’s digital age, digital assets such as cryptocurrency and digital wallets can significantly influence day-to-day finances. To the extent that the couple earned those funds during the marriage, they are marital assets. Yet, many couples overlook them.
Retirement Benefits
While many couples include 401(k)s and individual retirement accounts (IRAs) in divorce settlements, other retirement benefits, like pensions or deferred compensation plans, may be overlooked. These benefits need to be valued and divided appropriately in your divorce agreement.
Tax Refunds and Liabilities
Tax refunds and liabilities can significantly impact divorce settlements. Factoring anticipated tax refunds into your divorce asset division is important, as well as which party will claim certain deductions like mortgage payments. Similarly, if one spouse owes outstanding taxes, you should address the tax burden in the divorce agreement.
Real Estate Other Than the Marital Home
Couples may own real estate like:
- Vacation properties,
- Rental homes, or
- Investment properties.
Spouses may overlook real estate held in one spouse’s name only.
Collectibles and Art
Most often, spouses decide between themselves who gets the joint personal property that they have accumulated in the marriage, including furnishings, kitchen ware, tools, and general decor. Some of these items may be more valuable and call for more careful consideration in dividing them, including collectibles, art, antiques, and rare items.
Ensuring a Fair Divorce Agreement
Overlooking assets can lead to unfair distribution and may justify reopening the divorce agreement—and old wounds—years later. Beller Law’s experienced, knowledgeable attorney can guide you through identifying and fairly dividing your marital assets and liabilities. Our team is committed to providing practical, transparent guidance through clear communication, timely results, and helping you make well-informed decisions. Contact us today to discuss how we can help.