What is Equitable Distribution?

In a divorce, the parties split their marital assets. Marital assets refer to all property acquired during the marriage, whether they were acquired individually or jointly by the couple. However, each state is different when it comes to the laws involved. States follow either equitable distribution or community property laws.

Only nine states follow community property laws. These states require equal distribution of assets acquired during a marriage. Florida is an equitable distribution state, as defined by Florida Statute § 61.075(1). Equitable distribution refers to a fair (but not necessarily equal) allocation of assets. The assets may be divided 50/50, 60/40, 70/30, or some other split.

There are many elements that may factor into the distribution of marital assets, such as:

• The duration of the marriage.
• Each spouse’s contributions to the marriage, including care and education of the children as well as services as a homemaker.
• The economic circumstances of the parties.
• Any sacrifices of personal careers or educational opportunities made by either party.
• The desirability to retain any asset, such as a business or marital home.
• Any intentional dissipation, waste, depletion, or destruction of marital assets before or after the divorce petition is filed.

Every asset and liability must be identified, classified, and valued. This includes marital and non-marital assets and liabilities. Then, each marital asset and liability must be distributed between the parties.

Exceptions to Marital Assets

A person’s future salary is not a marital asset, but accrued benefits, such as paid time off, vacation pay, and annual leave, may be. Any future bonus checks may be considered a marital asset as well.

Gifts from a third party that are given during a marriage are considered non-marital assets. This would include any birthday or holiday gifts from a neighbor, employer, friend, or family member other than the spouse. Any property acquired after the divorce petition has been filed is considered a non-marital asset.

Generally, engagement rings and wedding rings are considered non-marital gifts for the recipient spouse. However, if those non-marital jewelry items are converted into another piece of jewelry during the marriage, the additional jewelry cost will be marital, while the initial engagement ring and wedding rings will remain non-marital.

In the event of a forgery, the associated liability is considered non-marital. The person who committed the fraud is responsible for it.

Contact Our West Palm Beach Divorce Attorney Today

In a Florida divorce, the court aims to distribute assets and debts fairly, which is the point of equitable distribution. However, there may be situations that warrant an unequal distribution of assets and debts.

Contact West Palm Beach divorce attorney Brian K. McMahon, P.A. for help with your divorce case. We have the necessary resources, experience, and skills to guide you through the entire divorce process. To schedule a consultation with our office, fill out the online form or call (561) 658-1789. We serve the West Palm Beach, Boca Raton, Port St. Lucie, and South Florida areas.