Fort Lauderdale Divorce Lawyer Blog
A mortgage payment can look routine during a marriage, yet become a six-figure issue when the marriage ends. When marital money reduces debt on one spouse’s nonmarital property, the resulting value can become a marital asset subject to equitable distribution. A recent Florida decision shows why a court must account for the entire principal reduction when an appellate mandate requires it. It also confirms that interest on an equalizing payment may depend on the equities after recalculation. If you are faced with disputes over property, marital funds, or equalizing payments, you should consult an experienced Miami divorce attorney as soon as possible to discuss how to protect your interests.
Case Setting
Allegedly, during the marriage, the spouses used marital funds to reduce the note and mortgage on real property that remained a nonmarital asset of one spouse. The principal reduction totaled $355,674. In the original dissolution judgment, the trial court did not include that marital mortgage paydown within the equitable distribution scheme, prompting the former wife to appeal.
It is alleged that the court decided the first appeal in the former wife’s favor. Applying section 61.075(6)(a)(1)(c), Florida Statutes, it held that a reduction in principal on debt secured by nonmarital real property constitutes a marital asset when the parties used marital funds to accomplish that reduction. The court reversed the judgment to the extent it omitted the mortgage paydown and directed the trial court to reconfigure the distribution to include the asset.
Reportedly, on remand, the trial court allocated $177,837 to the former husband, which represented only half of the $355,674 paydown. It did not account for the other half in the distribution scheme. The former wife appealed the amended final judgment and also challenged the denial of her request for statutory interest on any equalization payment dating back to the original dissolution judgment. During the second appeal, the former husband’s estate conceded that the trial court had not fully implemented the prior mandate.
Appellate Review of Equitable Distribution and Statutory Interest
On appeal, the court examined whether the amended judgment complied with its earlier mandate and with Florida’s equitable distribution statute. Although an appellee’s concession does not bind a reviewing court, the court independently agreed that the amended judgment remained incomplete. Its earlier decision required inclusion of the entire $355,674 mortgage reduction as a marital asset, not merely allocating one-half of that amount to one side of the ledger.
The court explained that the trial court must reconsider the complete distribution scheme. Section 61.075 requires consideration of the statutory factors and permits weighing other circumstances needed to achieve justice. The trial court may reassess the assets and liabilities and consider properly presented claims for credits. It must make findings explaining the revised arrangement.
The court addressed interest separately. Florida law treats an ordered equalizing payment as a vested debt and often applies statutory interest to monetary judgments. In dissolution cases, however, interest is not automatic. The trial court retains discretion to decide whether it advances an equitable division. The court authorized consideration of interest from the original judgment’s date after recalculation. It reversed and remanded for a distribution consistent with its instructions.
Discuss Your Property Division Case with a Skilled Miami Family Law Attorney
Complex property division often turns on careful tracing, valuation, and application of Florida law. If you have questions about your property rights in divorce, it is advisable to talk to an attorney as soon as possible. The skilled Miami equitable distribution attorneys at Sandy T. Fox, P.A., understand contested dissolution, and if we represent you, we will diligently pursue a fair resolution. Reach us through our online form or call 786-453-0794 to schedule a consultation.