Articles Posted in Equitable Distribution

Florida is an equitable distribution state, which means that, for the most part, any assets acquired during a marriage are considered the property of both parties. Further, such property is subject to division by the courts in the event a couple decides to divorce. The courts do not have to divide marital property equally, however, but can disburse them in a manner they deem fair. Recently, a Florida court examined the process of fashioning an equitable distribution in a case in which the husband appealed the trial court’s ruling. If you are interested in learning more about how the decision to divorce could impact you financially, it is advisable to speak with a Miami divorce lawyer promptly.

Procedural Setting of the Case

It is reported that the husband and wife married in 2002 and separated in August 2012. They lived apart for six years until the husband filed a petition for dissolution of marriage. The trial court conducted a trial and issued a final judgment of dissolution of marriage, which included an attached equitable distribution spreadsheet. Following the trial court’s decision, the husband filed a motion for rehearing, which was denied. The husband then appealed.

Equitable Distribution in Florida Divorce Actions

On appeal, the husband raises several issues with regard to the court’s equitable distribution, including the assertion that the trial court erred in granting the wife credit for tax liability owed by the husband. Continue reading ›

Florida is an equitable distribution state, which means that any property deemed a marital asset will be divided equitably among the parties in a divorce action, while any separate property will remain separate. As such, it is critical that the courts properly characterize all property the parties own to ensure a fair distribution. If a court errs when determining the nature of an asset, the parties may be able to appeal the final judgment of dissolution, as illustrated in a recent Florida ruling. If you intend to seek a divorce, it is wise to talk to a Miami divorce lawyer about your options.

History of the Case

It is reported that the husband filed a divorce petition in 2015. During the divorce trial, the main points of contention were the classification of financial accounts owned by the wife and real properties owned by the husband. The trial court issued a final judgment of dissolution of marriage in 2016, ruling that certain financial accounts were partially marital assets and that the classification of the properties was marital. The court did not provide a rationale for its decision.

Allegedly, in March 2022, a hearing was held to determine the non-marital portion of the wife’s financial accounts. The wife stipulated that four accounts were entirely marital, but the parties disagreed on the classification of the fifth account, which was an IRA. After the hearing, the trial court determined that the entire IRA was the wife’s nonmarital asset based on her testimony, the testimony of a certified public accountant, and submitted financial records. The husband appealed. Continue reading ›

In Florida divorce actions, the parties will often engage in discovery to gain a better understanding of their separate and marital assets. Such discovery generally must be completed before the parties enter into a marital settlement agreement. There are exceptions to the general rule, however, such as when one party alleges the other fraudulently withheld information regarding their property interests. In a recent Florida ruling, the court discussed when allegations of fraud constitute grounds for permitting post-marital settlement agreement discovery. If you intend to seek a divorce, it is smart to speak to a Miami divorce lawyer about what actions you can take to protect your interests.

Facts of the Case

It is reported that the parties, who were in the process of divorcing, entered into a marital settlement agreement (MSA) that addressed alimony, child support, property distribution, and bank accounts, stating that each party would retain 100% interest in the accounts titled under their respective names. The agreement also acknowledged that the parties had legal representation and the opportunity for discovery and waived the right to engage in additional discovery. The parties represented that they had sufficient knowledge of each other’s financial circumstances before executing the MSA.

Allegedly, the court incorporated the MSA into the final dissolution judgment. The wife subsequently moved to set aside the MSA, alleging that the former husband had fraudulently withheld information by opening two undisclosed bank accounts shortly before the MSA was finalized and filed notices of intent to subpoena the two non-party banks involved. The husband objected to the subpoenas, which were overruled. He then appealed. Continue reading ›

Under Florida law, while marital property is subject to equitable distribution in a divorce action, separate property is not; instead, it remains the property of the spouse to whom it belongs. Challenges in determining the nature of property can arise, however, when a party mingles separate and marital assets, as illustrated in a recent Florida divorce action in which the parties disagreed over whether a boat was a marital asset subject to equitable distribution. If you wish to seek a divorce, it is prudent to talk to a Miami divorce lawyer to determine how the end of your marriage may impact your property rights.

History of the Case

It is reported that the husband and the wife were married for eighteen years. After the court issued a final judgment of dissolution, the wife filed an appeal, arguing in part that the trial court erred in determining that a boat was the husband’s separate property for the purposes of equitable distribution.

Separate Versus Marital Property

On appeal, the court adopted the wife’s reasoning and reversed the trial court ruling. The court noted that the trial court determined that the boat in question was the husband’s separate property because the husband paid for it with funds he received from his father’s trust. The wife argued, however, that the husband could not prove that the boat was a separate asset because it was bought with money that was commingled with marital funds in the couple’s joint bank account. Continue reading ›

In Florida, the courts look unkindly at one party deliberately wasting community assets during a divorce or the downfall of a marriage. As such, if they find that one party has dissipated marital assets, it may negatively impact their property rights in the context of a divorce. In a recent Florida ruling, a court analyzed whether the cost of one party’s lawsuit filed prior to divorce constituted dissipation, ultimately ruling that it did not. If you or your spouse want to end your marriage, it is in your best interest to meet with a skilled Miami divorce attorney.

Background of the Case

It is reported that in 2015, the husband was fired for cause by his employer. After his termination, the employer ordered the husband to repay the bonus he received pursuant to his employment contract. The husband declined and filed a lawsuit against the employer. Ultimately, judgment was entered against the husband. He satisfied the judgment against him using marital assets.

It is alleged that the wife filed for divorce two years later. For purposes of equitable distribution, the court found that the husband engaged in misconduct at work and used marital property to pay the judgment against him without the wife’s consent or knowledge. Thus, it found that it constituted misconduct and assigned it to the husband and reduced the amount of assets he received via equitable distribution. The husband appealed. Continue reading ›

Under Florida law, any community property is subject to equitable division by the courts in a divorce action. Typically, pension benefits and any other retirement benefits accrued during a marriage constitute community property. Additionally, parties are entitled division of cost of living adjustments under Florida law as well. Recently, a Florida court clarified whether a party that is awarded a portion of a spouse’s pension in a deferred retirement option program  (DROP) is entitled to a cost of living adjustment, even if the DROP account is not created until after the divorce is final. If you want to learn more about how ending your marriage may impact you financially, it is in your best interest to speak to a Miami divorce attorney promptly.

Procedural History of the Case

It is reported that the husband and the wife married in 1999. In 2014, the husband filed for divorce. The following year, the court entered a final judgment of divorce that included provisions regarding the equitable distribution of the husband’s pension with the state retirement system. The provisions stated, in part, that the marital estate was distributed equally between the parties and that a QDRO must be prepared with regard to the husband’s retirement pension.

Allegedly, the court entered a QRDO that awarded the wife half of the husband’s retirement benefits that accrued from the date of the marriage to the date the divorce action was filed, to be taken as a deduction from each monthly benefit payable to the husband from the pension plan. One of the paragraphs of the QDRO provided for a proportionate share of any cost of living adjustment the husband received. The husband objected to the cost of living adjustment at the trial level. He then appealed. Continue reading ›

In many divorce actions, a couple will disagree as to how marital property should be divided. In some instances, a party will go so far as to intentionally divert funds to prevent their spouse from accessing them. The courts typically do not look kindly on such behavior, as demonstrated in a recent Florida divorce action in which the court found that the wife’s act of depositing marital funds in an irrevocable trust constituted misconduct. If you have concerns about how a divorce could impact your finances, it is in your best interest to meet with a Miami divorce attorney as soon as possible.

Factual and Procedural Background

It is reported that the husband and the wife were in the process of divorcing. After the petition for dissolution was filed, the wife transferred approximately millions of dollars in marital funds into an irrevocable trust. She allegedly did so to protect the husband from wasting the assets after the divorce, given his history of being reckless with marital funds and subject to extortion schemes. Allegedly, in the trial court’s final judgment of divorce, it allocated the money in the trust to the wife for purposes of equitable distribution, which increased the value of the marital estate and ultimately prompted the court to require the wife to pay the husband an equalizer payment of approximately $2 million. The wife appealed, challenging the trial court’s ruling.

Intentional Diversion of Marital Funds

On appeal, the trial court ruling was affirmed. Specifically, the court found that contrary to her assertions, the wife’s actions solely benefitted her and were unrelated to the marriage and, therefore, constituted misconduct and intentional diversion of marital funds. Continue reading ›

Married couples often accumulate assets over the course of their marriage, and how that property should be split is often one of the most contentious issues when they divorce. The state of Florida is an equitable distribution state, which means that the courts are free to divide marital assets in any way they see proper. Whether a court distributes property equally or unequally, it must establish a factual foundation for its decision, and if it fails to do so, the decision may be overturned. This was recently proven in a Florida opinion issued in a divorce proceeding. It is in your best interest to contact with a Florida divorce attorney about your rights if you decide to end your marriage.

The Case’s Background

The couple allegedly married in 2002. During their marriage, they had two little children. The spouse served in the US military until he was honorably discharged in 2017 owing to mental and physical injuries sustained in many incidents. The Veterans Administration determined that he was 100 percent disabled and awarded him disability compensation.

Later that year, the wife reportedly filed for divorce. The husband stayed in the marital house, while the woman moved in with her parents with the children. Both parties filed an equitable distribution worksheet to seek an equitable allocation of the assets. The husband sought that he be allowed to maintain the marital home in exchange for taking on the mortgage, whilst the wife urged that the house be sold and the proceeds split. The court delivered a final ruling that mostly followed the husband’s planned asset and liability division, but ordered the marital home to be sold. The husband filed an appeal. Continue reading ›