Asset Division Attorney in Sarasota, Florida

Divorce is often an emotionally and financially challenging process, especially when it comes to dividing assets. In Florida, the division of assets is governed by the principle of "equitable distribution," which means the division is fair but not necessarily equal. 

Understanding how asset division works and what factors courts consider can help you protect your rights and your financial future during and after divorce.

If you need assistance with asset division, reach out to Coyne Law P.A. today. Located in Sarasota, Florida, they serve clients throughout Sarasota County, including Bee Ridge, Fruitville, Nokomis, Venice, Manasota, and North Port. The firm also serves Manatee County, including Bradenton, Palmetto, Lakewood Ranch, Myakka City, and Duette.

Marital vs. Non-Marital Assets

One of the first steps in the asset division process is determining which assets are marital and which are non-marital. Marital assets are subject to division in a divorce, while non-marital assets typically remain with the spouse who owns them.

Marital Assets

These are the assets acquired by either spouse during the marriage, regardless of whose name is on the title. Marital assets can include:

• The family home

• Bank accounts

• Retirement accounts

• Investments

• Vehicles

• Businesses started during the marriage

Non-Marital Assets

Also known as "separate assets," these are typically acquired before the marriage or through inheritance or gift during the marriage. Non-marital assets are generally not subject to division unless they were commingled with marital assets. 

For example, if one spouse had a savings account before marriage but deposited marital earnings into it during the marriage, it may become a marital asset.

The distinction between marital and non-marital assets is crucial in determining what is subject to equitable distribution. If there's a dispute over whether an asset is marital or non-marital, the court will make the final decision.

How Florida Courts Divide Assets

Once the marital and non-marital assets are identified, the court will divide the marital assets using the principle of equitable distribution. In Florida, equitable doesn't always mean a 50/50 split, though that’s often a starting point. Instead, the division is based on fairness, taking into account several factors that we'll discuss in more detail below.

In cases where both spouses agree on how to divide assets, the court will likely approve the agreement. However, if the spouses can’t reach an agreement, the court will intervene and decide how to divide the assets.

Factors That Influence Asset Division

Florida courts take a range of factors into account when determining how to divide marital assets fairly. Some of the key factors include:

1. The Length of the Marriage: The length of the marriage plays a significant role in how assets are divided. In general, the longer the marriage, the more likely it is that the court will divide assets more evenly. In short-term marriages, the court may lean toward allowing each spouse to keep what they brought into the marriage.
   

2. Each Spouse's Economic Circumstances: The financial situation of each spouse at the time of the divorce is also a key consideration. If one spouse has significantly greater earning potential than the other, the court may award the other spouse a larger portion of the marital assets to provide financial stability post-divorce.
   

3. Contributions to the Marriage: The court will also consider the contributions of each spouse to the marriage. This includes both financial contributions and non-financial contributions, such as homemaking or child-rearing. For example, if one spouse stayed home to care for the children while the other worked, the stay-at-home spouse’s contributions will be valued, and the asset division may reflect that.
   

4. Contributions to Career or Education: If one spouse contributed to the other’s career or education by financially supporting them while they advanced their career or earned a degree, this will also be factored into the asset division. The spouse who provided support may be entitled to a larger share of the assets to compensate for their contributions.
   

5. Dissipation of Assets: If one spouse intentionally wastes or dissipates marital assets during the marriage or after filing for divorce, the court may penalize that spouse by awarding a larger share of the assets to the other spouse. Dissipation can include spending money on extramarital affairs, gambling, or excessive and unnecessary purchases.
   

6. Custody of Children: In cases where one spouse has primary custody of the children, the court may award them a larger share of the marital home or other assets to provide stability for the children. The goal is to make sure that the custodial parent can provide a comfortable and stable environment for the children post-divorce.
   

7. Debts and Liabilities: Marital debts are also subject to equitable distribution. The court will consider which spouse is better able to pay certain debts and may divide them accordingly. Debts incurred during the marriage, even if they’re in one spouse’s name, are typically considered marital debts and will be divided along with the assets.

Common Issues in Asset Division

While the general process for dividing assets may seem straightforward, several common issues can complicate the process. Understanding these issues can help you manage the asset division process more effectively.

Hidden Assets

In some divorce cases, one spouse may attempt to hide assets to avoid having to divide them. This is illegal, and courts take it very seriously. If you suspect your spouse is hiding assets, it’s essential to work with an experienced family law attorney who may help uncover hidden assets through forensic accounting or other legal tools.

Valuation of Assets

Determining the value of certain assets can also be a challenge, especially in cases where the assets are nuanced, such as businesses, stocks, or investment properties. Both spouses may need to hire financial professionals to assess the value of these assets. The court will use the fair market value of assets at the time of the divorce to determine how to divide them.

Division of Retirement Accounts

Retirement accounts can be a significant marital asset, and dividing them can be complicated. If not done correctly, dividing retirement accounts may result in substantial tax penalties or the loss of benefits. In most cases, a qualified domestic relations order (QDRO) is needed to divide retirement accounts without triggering penalties.

The Family Home

The family home is often the largest and most emotional asset to divide. The court may order the home to be sold, with the proceeds split between the spouses, or it may award the home to one spouse. 

In some cases, the spouse who keeps the home may be required to "buy out" the other spouse’s share. If there are children involved, the court may give primary consideration to the custodial parent’s need to remain in the home for the stability of the children.

Prenuptial and Postnuptial Agreements

If the spouses have a prenuptial or postnuptial agreement, this may significantly impact the asset division process. These agreements are contracts made before or during the marriage that outline how assets will be divided in the event of a divorce. 

If the agreement is valid and enforceable, the court will typically honor it, provided that it meets legal requirements and doesn’t unfairly favor one spouse.

It’s important to note that even with a prenuptial or postnuptial agreement, the court may still have some discretion to modify the terms of the agreement, particularly if it leaves one spouse in a significantly disadvantaged financial position.

Mediation and Settlements

Many divorcing couples prefer to settle asset division through mediation rather than leaving it up to the court. Mediation allows both spouses to negotiate and come to an agreement on how to divide their assets without the need for a judge’s ruling. This can often be a faster, less expensive, and less contentious way to divide assets.

During mediation, both spouses, along with their attorneys, work with a neutral third party (the mediator) to reach a mutually agreeable solution. If an agreement is reached, it’s presented to the court for approval.

Mediation may be especially beneficial in cases where the spouses want to maintain control over how their assets are divided, rather than having a judge make the final decision.

Finalizing Asset Division

Once asset division has been determined, either through mediation, settlement, or a court order, the divorce decree will outline the specific division of assets. Both spouses are legally bound to comply with the terms of the divorce decree, and any failure to do so may result in legal penalties.

It’s essential to work with an experienced family law attorney throughout the process to help make sure that your rights are protected, and the division of assets is as fair as possible.