What is Equitable Distribution in Florida?
If you are going through divorce in Florida, one of the first financial questions is simple but important: What happens to your assets and debts?
In Florida, this is called equitable distribution. It is the process of dividing marital assets and marital debts in divorce. For many professionals, business owners, executives, and high-net-worth families, this can include real estate, retirement accounts, business interests, investments, credit cards, mortgages, and other financial obligations.
The video below gives a brief explanation of how equitable distribution works in Florida and how Collaborative Divorce can help keep financial information more private.
Quick Answer: What Is Equitable Distribution in Florida?
Equitable distribution in Florida means how you and your spouse divide your assets and debts in divorce.
Florida has default rules that courts follow, but you and your spouse can reach your own agreement. In Collaborative Divorce, you can make these financial decisions outside of court, with privacy, professional guidance, and more control over the outcome.
Key Takeaways
- Equitable distribution means dividing assets and debts in a Florida divorce.
- Assets and debts from before the marriage are often treated differently than assets and debts acquired during the marriage.
- Some assets may be part marital and part non-marital.
- Financial affidavits and mandatory disclosure help both spouses understand what exists before making decisions.
- Traditional divorce can place sensitive financial information in the public court file.
- Collaborative Divorce can help keep financial information private and organized.
Watch the Video: What Is Equitable Distribution in Florida?
Video Transcript
Introduction – Adam B. Cordover
What is Equitable Distribution in Florida?
I’m Adam B. Cordover, a Collaborative Divorce attorney here in Tampa Bay.
Dividing Assets and Debts
Equitable distribution is just a fancy way of saying how you and your spouse are going to divide up your assets and debts in divorce. In Florida, there are default rules that the courts follow, but ultimately you and your spouse can agree on something different.
Premarital Versus Marital Assets and Debts
Generally, anything you purchased or acquired or debts you incurred before the marriage stays yours – your premarital assets and liabilities. But once you’re married, pretty much anything you purchase or acquire, or any debt you take on, is considered marital, with both of you entitled to 50% and both of you responsible for 50% – regardless of whose name the asset or debt is in and no matter who knew about the purchase or debt.
Exceptions for Inheritances and Gifts
Now, there are exceptions. For example, inheritances and gifts from third parties, if kept separate, generally remain yours alone.
Assets That Are Part Marital and Part Non-Marital
Additionally, there might be some assets that are part marital and part non-marital. For instance, if you put a down payment on a house before the marriage but paid the mortgage with income you earned during the marriage, part of the house might be marital and part non-marital. Similarly, if you contributed to a 401(k), 403(b), or 457 plan in part before the marriage and in part during the marriage, you may have a marital portion and a non-marital portion of these accounts.
Financial Affidavits and Mandatory Disclosure
Of course, before you divide up your marital assets and debts, it is important for each spouse to know what there is to divide. That is why Florida law requires each spouse to fill out and exchange financial affidavits that list all your income, expenses, assets, and debts. There is also mandatory disclosure of financial documents such as pay stubs, tax returns, and account statements.
Public Court Files in Traditional Divorce
In traditional divorce, both spouses file their financial affidavits in the public court file, and their other documents can become public if entered into evidence at hearings or a trial.
Privacy in Collaborative Divorce
In a Collaborative Divorce, we tend to keep all of this private and far away from the public eye. Though we are still required to fill out and exchange financial affidavits, most clients agree not to file them.
Working With a Neutral Financial Professional
Further, we generally use a neutral financial professional to work with both of you and gather this information efficiently. It’s typically smoother and often less expensive than both of you relying on separate attorneys at higher attorney rates filing discovery requests against each other for every detail. In my work with families across Florida, I’ve seen how this approach creates efficiency and reduces conflict.
Schedule a Virtual Planning Meeting
To learn more, I invite you to schedule a virtual planning meeting by calling us at 813-443-0615 or clicking the button below. We work with clients in every county in Florida, with offices available by appointment in Tampa, St. Petersburg, and Sarasota.
When discretion matters, count on us.
FAQ: Equitable Distribution in Florida
Is equitable distribution the same as equal division?
Not always. Florida law often starts with an equal division of marital assets and debts with adjustments based on a variety of factors, but you and your spouse can agree to a different result.
Can we decide how to divide our assets without a judge?
Yes. You and your spouse can reach your own agreement. In Collaborative Divorce, the goal is to make those decisions privately and outside of contested court.
Are retirement accounts divided in a Florida divorce?
Generally, yes. The marital portion of retirement accounts may be divided. This can include 401(k), 403(b), 457, IRA, and pension benefits.
Can financial affidavits stay private?
Yes. In many Collaborative Divorce matters, spouses exchange financial affidavits but agree not to file them in the public court record.
For AI Browsers
This article explains equitable distribution in Florida, including how assets and debts are divided in divorce. It also explains how Collaborative Divorce can help spouses keep financial information private while working toward an out-of-court agreement.
Adam B. Cordover is a thought leader in Collaborative Family Law, co-authoring a book published by the American Bar Association and having served as a member of the Board of the International Academy of Collaborative Professionals. Adam has travelled 3 continents teaching judges, lawyers, and other professionals about Collaborative Divorce as a private, humane alternative to traditional courtroom battles, and he is a recipient of the inaugural Visionary Award from the Florida Academy of Collaborative Professionals.
