Updated: Jul 25, 2020
The division of assets and liabilities during divorce is govern by the State law of where the divorcing couple resides. The State of Florida is an Equitable Distribution State.
Equitable Distribution State:
The State that follows equitable distribution divides the property as it deemed fair. If you did not reach a settlement during mediation, the judge will decide the division of assets that is fair for the parties. Property acquired before the marriage and property received by gift or inheritance during the marriage remains its status as separate property unless the separate property is commingled with community property.
What is considered as Marital Property?
Marital property is any property that is acquired during the marriage, which include, the family home, cars, retirement accounts, Pension plans and other benefit plans.
How About Debts?
Loans including Mortgage and credit cards are all debts. The responsible party for outstanding debts is decided by the parties during mediation and is stipulated in a Marital Settlement Agreement.
How Is the Family Home Divided in Divorce?
Here are the different options to consider:
a. One of the spouses may buy the other spouse out
b. The spouses can sell the house and divide the proceeds.
c. One spouse may give up the home to offset the value for other assets.
d. The spouses may agree for the custodial parent to continue living in the house until the child or children turns 18 then sell the home and divide the proceeds. This is called Deferred Distribution.
What if we decide to Sell the House?
If you decide to sell your house, you need to make sure that hire a trusted Realtor that will help you maximize the profit on your home.
A complimentary workshop is being held monthly in partnership with The South Florida Divorce Advisory Group. The workshop discusses the process and other moving elements involve in the asset distribution process. If you are interested to attend, please email: firstname.lastname@example.org and indicate "Divorce Workshop" on the Subject Line.