New Florida Law Adds Details to the Meaning of “Equitable Distribution”
There is nothing unusual about Florida’s status as an equitable distribution state; more than three quarters of U.S. states follow the equitable distribution rule in divorce cases. Equitable distribution means that, if the case goes to trial because the parties are unable to reach a property settlement agreement during mediation, the judge must divide the couple’s marital assets and debts in the fairest possible way, even if it is an unequal division. The meaning of “fair” is open to interpretation, so after considering each party’s post-divorce financial situation, judges have come up with widely divergent ways of dividing marital property and debts, leading to contradictions in case law. Florida case law also contains some contradictions regarding how to determine whether certain assets are marital or separate. A law that goes into effect in July 2024 contains instructions on how judges in divorce cases should resolve these issues. If your divorce case seems to be headed for trial because of disputes over property, contact a Boca Raton divorce lawyer.
Interim Partial Distribution of Marital Assets
HB 521, the new divorce law that goes into effect this summer, set guidelines for several hotly contested issues in divorce cases; one of these is the interim partial distribution of marital assets. The most common type of alimony award that divorce courts order is temporary alimony, the kind that automatically terminates when the divorce becomes final; it is also known as pendente lite alimony. Courts order temporary alimony, also known as interim partial distribution of marital assets, so that the lower income spouse will not suffer financial catastrophe while the case is pending. Under the new law, the courts have the right to order temporary alimony payments or to award financially disadvantaged spouses temporary possession of certain marital assets when an asset is in danger of being repossessed because of one spouse’s refusal to make payments on it. They can also order temporary payments or awards of assets when the award is necessary to ensure the financial support of the couple’s minor children under the court entering a final child support order.
HB 521 on Interspousal Gifts of Real Estate
Interspousal gifts have also been a gray area in terms of whether they are marital property; some judges have considered them marital, while others have considered them the separate property of the recipient spouse. The new law clarifies this matter. When one spouse gives a valuable gift, such as real estate, to the other spouse, the giving spouse must state in writing that the gift is to be the separate property of the recipient spouse. Otherwise, the asset is marital property, even if only one spouse’s name is on the title.
Contact Schwartz | White About Disputes Over Marital Property
A South Florida family law attorney can help you if you and your spouse disagree about which assets are marital and which ones are separate. Contact Schwartz | White in Boca Raton, Florida about your case.
Sources:
floridabar.org/the-florida-bar-news/equitable-distribution-of-marital-assets-and-liabilities-bill-become-law/
flsenate.gov/Session/Bill/2024/521/BillText/Filed/PDF
