Tag Archive for: dissolution of marriage

Are Real Estate Syndications Considered Marital Property in a Florida Divorce?

Real estate syndications have become a popular investment strategy for high-net-worth individuals and savvy investors seeking passive income and portfolio diversification. However, if you are facing a divorce in Florida, you may be wondering: Is my investment in a real estate syndication considered marital property? And if so, how is it valued and divided?

The answer depends on several factors, including when the investment was made, how it was funded, and whether any legal agreements protect it. In this post, we’ll explore how Florida law treats real estate syndications in divorce and what you need to know about valuation and division.


Are Real Estate Syndications Marital Property in Florida?

In Florida, marital property includes assets acquired by either spouse during the marriage, regardless of whose name is on the title or investment documents. Conversely, nonmarital (or separate) property includes assets acquired before the marriage, through inheritance, or via a gift from a third party.

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How Tax Loss Harvesting Can Turn Non-Marital Investments Into Marital Assets

If you’re an investor going through a divorce, you likely have a keen eye on your finances. You may already be familiar with tax loss harvesting, a strategy that can help reduce your tax bill by selling investments at a loss to offset capital gains. While this technique can be a smart financial move, it can also have unintended consequences in divorce—potentially turning what you thought was your separate, non-marital property into a shared marital asset.

What Is Tax Loss Harvesting?*

Tax loss harvesting is a strategy that can be used to lower your tax liability. For example, if you have investments in a taxable brokerage account that have lost value, you can sell them at a loss to offset capital gains from other investments. This reduces your overall taxable income and can lead to significant tax savings.

There are many rules associated with tax loss harvesting.  For example, you cannot sell a mutual fund at a loss and then immediately repurchase that same mutual fund.  However, one strategy that many investors utilize is to sell one investment at a loss and then purchase a similar, but different, investment.  For example, you might sell VTSAX, the Vanguard U.S. total stock market index fund, at a loss and purchase VFIAX, the Vanguard S&P 500 index fund, which is highly correlated with VTSAX.  The White Coat Investor website has a really good explainer on tax loss harvesting.

Many investors use this approach as part of a long-term financial strategy, reinvesting the proceeds into different securities to maintain their investment portfolio. However, if you are going through a divorce, you must be careful about how and when you execute tax loss harvesting.

*Please note that we are not accountants, financial advisors, or tax lawyers, this information is not intended to provide advice, and this is for educational purposes only.

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Collaborative Divorce: Control Your Own Destiny

When you’re facing the difficult decision to divorce, it’s natural to feel overwhelmed. And when you are used to making high stakes decisions, the feeling of powerlessness is just unacceptable. Decisions about your family, finances, and future carry immense weight. The last thing you want is to surrender control of your destiny to a judge in a public courtroom. That’s why many C-Suite executives, doctors, business owners, high-ranking military officers, and other professionals in Florida choose Collaborative Divorce.

What Is Collaborative Divorce?

Collaborative Divorce is a unique and private approach to family law that puts you and your spouse in charge. Instead of battling it out in court, you work together with a team of professionals to craft agreed upon solutions tailored to your family’s needs. Each of you have your own separate lawyers to provide you with independent legal advice.  The Collaborative Lawyers are there solely for the purpose of reaching an out-of-court agreement, and are prohibited, once the Collaborative Process begins, from being used to fight in court.  Additionally, your Collaborative Team may include a financial expert to navigate tricky financial discussions and a Facilitator (who is a licensed mental health professional) to keep discussion focused on the future rather than the disputes that led to the divorce.

Maintain Control Over Critical Decisions

Unlike traditional litigation, Collaborative Divorce fosters cooperation rather than conflict. You, your spouse, and your lawyers share the same goal: to find resolutions that work for everyone in your family. This approach gives you the power to decide how to divide assets, plan for your children’s future, and address any other issues that arise. Instead of a judge dictating your future, you together with your spouse maintain control over these critical decisions.

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Cordover Appears on Great Practice Great Life Podcast

Earlier this week, I had the pleasure of being featured on Episode 114 of the podcast Great Practice, Great Life, where I shared insights into my journey as an international thought leader in Collaborative Divorce and my efforts to revolutionize out-of-court dispute resolution through my law firm, where we virtually represent clients throughout the State of Florida and also have offices in Tampa, St. Petersburg, and Sarasota. This conversation gave me the chance to reflect on some of the key moments and principles that have shaped both my professional and personal life.

One of the topics we discussed was the profound impact of Hurricane Helene in 2024, when, like many others, I lost my home from the flood surge. In the aftermath of that challenging time, I found an opportunity to reassess my approach to work and life, leaning into gratitude. The hurricane, like so many challenges we face, served as a catalyst for growth and transformation. My story highlights how adversity can push us to innovate and strengthen our resolve.

 

We also dove into the unique world of Collaborative Divorce, an area of practice I’m deeply passionate about. This process brings together attorneys, mental health professionals, and financial experts to help families resolve disputes amicably, privately, and outside the courtroom. It’s a particularly valuable approach for professionals, doctors, executives, members of the LGBTQ+ community, business owners, politicians, celebrities, professional athletes, and others who place a premium on privacy and self-determination. In the podcast, I emphasized the importance of teamwork and how shifting from a competitive to a collaborative mindset can lead to more fulfilling and effective outcomes for everyone involved.

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Simplifying Divorce for High Net Worth Individuals: Working With Your CPA or Financial Advisor

The Challenge of Divorce for High Net Worth Individuals

Navigating a divorce is never easy, and for high net worth individuals, the process can feel even more overwhelming. Between managing the complexities of Florida Family Law Rule of Procedure 12.285—commonly known as mandatory disclosure—and safeguarding your financial future, it’s natural to want to simplify the experience and delegate much of the work. That’s where a skilled family law attorney can be invaluable. By working closely with your CPA or financial advisor, we can streamline the disclosure process and minimize the demands on your time and energy.

Understanding Mandatory Disclosure

Mandatory disclosure requires each party in a divorce to provide detailed financial documentation. For high net worth individuals, this often includes extensive information about investments, business interests, real estate holdings, and more. The sheer volume of documentation can be daunting, but it doesn’t have to be. If you already have a trusted CPA or financial advisor, they are likely familiar with much of your financial landscape. Our team can work directly with them to gather and organize the required information, so you don’t have to get bogged down in the details.

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8 Tips For Co-Parenting After a Hurricane

Co-parenting during a divorce is challenging under normal circumstances, and dealing with the aftermath of a devastating hurricane adds another layer of difficulty. Here are some practical tips to navigate this situation effectively.  As a preview, many of these tips can be best accomplished within a Collaborative Divorce.

1. Prioritize the Children’s Well-Being

Keep routines as consistent as possible, such as school, meals, and bedtime, to provide stability.  Be honest with your children in an age-appropriate way about what’s happening but reassure them they are safe and loved.  Avoid speaking negatively about the other parent in front of the children.

2. Communicate Effectively

Use clear, respectful, and focused communication to coordinate on parenting issues.  Consider using co-parenting apps like OurFamilyWizard or TalkingParents to document agreements and streamline communication if direct interaction is too challenging.

3. Develop a Flexible Parenting Plan

A hurricane might have disrupted your previous arrangements, so work together to create a temporary plan that accounts for housing, transportation, and other logistical challenges.  Be prepared to adjust custody schedules based on access to safe housing and resources.

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Financial Education Books For Spouses Going Through Divorce

It is common when going through divorce in Florida or elsewhere for one or both spouses to be lost when it comes to finances and retirement planning.  One of the best things that you can do to make divorce less traumatic and to help ensure that you and your spouse’s interests are being met is to involve a Neutral Financial Professional within a Collaborative Divorce process.

It is also important to educate yourself when it comes to finances.  Below are a list of books that I have personally found helpful to educate myself.  Even if you are not going through divorce, you may get something from these resources.

The Total Money Makeover by Dave Ramsey

If you have medical school student loans, a high interest mortgage or home equity lines of credit, or other forms of large debt, and you just don’t know how you could possibly pay it off in any reasonable amount of time, Dave Ramsey’s The Total Money Makeover is for you.  As someone who went to a very expensive law school and incurred six figures in educational debt, I found this book immensely helpful.  I am a big believer in the Financial Independence (sometimes also called Financial Independence Retire Early, or “FIRE”) movement; so many influencers who have put themselves on the path to FIRE have mentioned that they started off by getting out of debt after reading this book.

The Simple Path to Wealth by J.L. Collins

J.L. Collins’ The Simple Path to Wealth is the book I wish I read when I was just starting my career.  His main message is that investing does not need to be complex, the stock market will crash but it will also rebound and grow, and that you can build significant wealth over time by simply investing in a total U.S. stock market index fund and maybe also a total U.S. bond index fund (depending on your age and risk tolerance).  J.L. Collins is known as the Godfather of FIRE, and he tells audiences that you can actually find most of the ideas in the book for free in their raw form in his blog’s Stock Series.  I have found both the book and Stock Series helpful to explain the markets and prevent me from selling my portfolio when the market has crashed.  Further, the Stock Series, which Collins updates regularly, does a good job at explaining many of the types of investment vehicles that get addressed in divorce, such as brokerage accounts, traditional and Roth 401(k)s, traditional and Roth IRAs, 403(b)s, and TSPs.  Beyond educating yourself, The Simple Path to Wealth may be a great book to provide as a gift to your young adult children as the content started as a letter to J.L. Collins’ daughter, explaining to someone who didn’t want to think about investing how they could build wealth without giving it much thought.

I Will Teach You to Be Rich by Ramit Sethi

Admittedly, the title is kind of cringeworthy, but I found the content in Ramit Sethi’s I Will Teach You to Be Rich to be helpful nonetheless.  He provides very practical advice on everything from lowering interest rates you pay on credit cards, to opening high yield savings accounts, to automating saving and investing.  He also believes strongly that you don’t need to live like a hermit to build wealth, and that it is important to mindfully spend money on those things that bring you happiness.

Atomic Habits by James Clear

James Clear’s Atomic Habits explores the science of habit formation and how small, incremental changes can lead you to significant improvements over time.  Clear stresses that consistent, tiny improvements—what he calls “atomic habits”—can compound over time, leading to profound personal and professional transformations.  His concepts mesh pretty well with the books discussed above, especially when he addresses the power of compound interest to transform small, consistent investments over a long period of time to vast amounts of wealth.  Besides becoming financially healthier, this book helped me become physically healthier, as well, by influencing me to make small, consistent changes in my diet and exercise, leading to the shedding of 30+ pounds over the course of eighteen months.

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How Are Medical School Student Loans Handled In a Florida Divorce?

When you’re facing a divorce in Florida, one of the complex financial issues you might encounter is how to handle student loans, particularly medical school student loans. These debts can be substantial, often amounting to hundreds of thousands of dollars, and it’s natural to wonder how they will be treated during the divorce process. Understanding your options and rights is crucial, especially if you and your spouse are seeking a Collaborative Divorce, which focuses on finding amicable solutions privately rather than through a public divorce court battle.

Understanding Marital vs. Non-Marital Debt – Med School Loans

In Florida, the law distinguishes between marital and non-marital assets and debts. Marital debts are those incurred during the marriage, regardless of whose name they are in or who incurred them. Non-marital debts, on the other hand, are typically those incurred before the marriage or after the date of separation.

If you took out medical school loans before you were married, these debts are generally considered non-marital, meaning you would be solely responsible for them. However, if you took out the loans during the marriage, things get a bit more complicated.

Medical School Student Loans as Marital Debt

If your medical school student loans were taken out during your marriage, they will be considered marital debt. This means that both you and your spouse could be responsible for repaying them, even if it was taken out in only one spouse’s name.  If some student loans were taken out prior to the marriage and other medical school debt was taken out during the marriage, then some loans will likely be considered non-marital and other med school loans will be considered marital. In a traditional divorce, this could lead to a lengthy and contentious battle, especially if the loans are significant.  More commonly, especially in a Collaborative Divorce, only one spouse ends up taking responsibility for paying off the marital portion of the loans, while they also typically get something in return to offset the debt.  Alternatively, the other spouse may take on a different set of debts as an offset.

In a Collaborative Divorce, you and your spouse have the opportunity to work together to find a fair and equitable solution. The Collaborative Process encourages open communication and cooperation, allowing both of you to express your concerns and preferences.

At the end of the day, a court will likely order, and most divorcing spouses agree on, an equal distribution of your family’s marital net worth.  So, for example, if your family has a total of $3 million in marital assets and $1 million in marital debts, equaling a net marital estate of $2 million, then likely each of you will end up with around a net worth of $1 million from the marital estate (though most people agree to an equal distribution of your marital assets/debts, you can also agree to an unequal distribution if it makes sense for your family or as an alternative to alimony).  For this reason, when determining how you are going to split your assets and debts, it is important to look at not just one debt, like medical school student loans, but at your family’s full financial picture.

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St. Petersburg Divorce Lawyer Review: “Absolutely Outstanding Service”

We are humbled every time a client takes the time out of their busy schedule to leave a review and let others know about their experience.  Below you will find a recent review left by a client on our St. Petersburg office Google Page:

Absolutely outstanding service from Adam and team at Family Diplomacy: A Collaborative Law Firm! From the very beginning, they demonstrated immense professionalism and empathy. They guided me through the entire process, explaining everything clearly and ensuring I understood my options. Their expertise and strategic approach led to a favorable outcome, and I couldn’t be more grateful. I highly recommend their services to anyone going through a difficult time like divorce. Thank you for your exceptional support and dedication!

As I am required to state by the Florida Bar, each circumstance is different, and we cannot guarantee any particular result.  But we sure would like to try!

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Cordover Joins Sarasota Collaborative Family Law Professionals

Family Diplomacy managing attorney Adam B. Cordover has joined the Sarasota Collaborative Family Law Professionals (“SCFLP”) practice group.

About the Sarasota Collaborative Family Law Professionals

SCFLP is similar to a local bar association (it is not a law firm), and it is a membership-based organization made up of independent lawyers, psychologist, therapists, accountants, and financial planners who believe that there are better alternatives to court-based divorce.  Specifically, the group educates professionals and the public about Collaborative Divorce and Family Law, and its members help families through the Collaborative Process.

As stated in the Sarasota group’s brochure, “All members of SCFLP have extensive experience in the area of family law. They are committed to the collaborative process and work together to reach a settlement on fair and equitable terms without the financial and emotional cost that often accompanies litigation. All members of SCFLP have extensive experience in the area of family law, and are licensed by their respective designated professional organization. Each completes the training required by the International Academy of Collaborative Professionals (IACP).”

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