Community Property vs. Equitable Distribution in Florida

Understanding Division Differences

Even in relatively simple divorces, there are often difficult practical elements to manage. One of the most common is the matter of how belongings and assets will be divided. This can also be an incredibly emotionally-charged part of divorce, with disagreements over what is a fair split a typical hurdle to finalizing.

Many people assume that everything will be split 50/50. This isn’t always the case and the approach courts take certainly vary depending on where in the country you get divorced. So, we’re going to explore the two most common forms of distribution: community property and equitable distribution. What do they mean, which is relevant to divorces in Florida, and how do they affect divorce?

What Is Community Property?

Community property is the model that a lot of people associate with divorces. The law relating to this approach essentially assumes that all debts and assets acquired during the marriage are the shared property of the couple. It doesn’t matter who earned more money during the marriage or who paid more of the mortgage. The court tends to divide everything 50/50.

However, community property laws only apply in nine states.

These are:

• Arizona
• California
• Idaho
• Louisiana
• Nevada
• New Mexico
• Texas
• Washington
• Wisconsin

What Is Equitable Distribution?

Equitable distribution is a slightly more complex model than community property. In essence, this system focuses on dividing marital property fairly. This isn’t quite the same thing as dividing property equally, as what makes a division fair comes down to interpretation.

This doesn’t mean the division of property won’t be determined as a 50/50 split – in fact, judges will often start from this position and work from there. Nevertheless, the court will also consider various other elements, from the personal contributions of each spouse to the marriage to what the post-divorce economic needs of each are.

Is Florida a Community Property State?

No. Florida does not appear on the list of nine states that use the community property model for division of assets. Rather, as with most states, it follows the equitable distribution model. This is outlined in Florida Statute §61.075, confirming:

“…in distributing the marital assets and liabilities between the parties, the court must begin with the premise that the distribution should be equal, unless there is a justification for an unequal distribution based on all relevant factors…”

This certainly isn’t as simple as the community property approach. Nevertheless, it does show that the courts recognize that not all marriages take the same shape and everyone has differing needs, and there’s a commitment to ensuring the division of assets reflects that.

What is Considered Marital Property?

An important definition in Florida divorce law is that of marital property. During the equitable distribution of assets, it is only marital property that is allocated to each party and distributed.

So, what is typically defined as marital property in Florida?

What is Not Considered Marital Property?

In equitable distribution, there are also some assets that will be considered by the court to be separate property. This means they won’t be subject to division.

Examples of non-marital assets include the following.

What Factors Affect Division?

Determining what represents an equitable distribution of assets can be quite complex. Indeed, each party may have a differing opinion on what is fair. When considering a case, a judge will take a variety of factors into account, including:

• Length of marriage – The period a couple has been married on its own isn’t necessarily an influencing factor. However, when combined with other factors, such as financial dependency or career interruption, the length of a marriage may be considered when making decisions about what represents a fair distribution of assets.
• Financial contributions – Each spouse’s financial contributions to the marriage will be assessed, particularly in cases where both are equally working but one party has been notably paying for a larger number of bills to maintain the marriage.
• Non-financial contributions – Contributions of unpaid labor involved with raising children or maintaining the home will be considered when calculating the equal division of financial and other assets.
• Career or education interruption – If one spouse’s career or education was interrupted to take on the responsibility of childcare or other family reasons, the division of assets may take into account likely costs involved in establishing training or work.
• Post-divorce economics – Is one spouse’s economic situation after the divorce likely to be notably lower than the other? This can impact asset division, too.
• The need to keep assets intact – For instance, when business assets form part of marital division, courts may consider the need to keep the business intact when determining wider division.
• Financial behavior – When one spouse has been particularly wasteful or a reckless spender, the court may take this into account during division.
• Asset transparency – If one party has been found to be hiding or intentionally dissipating assets, the court may award a larger percentage to the other.
• Children’s needs – Where one parent is taking primary custody of children, the court might consider the need to keep their current living arrangements intact or fund required to pay for schooling when dividing assets.

Final Word: Equitable Doesn’t Mean Easy

Florida doesn’t take the relatively simple route of splitting assets directly down the middle. Instead, the law is geared toward fairness, recognizing that various factors affect what’s truly equal. That said, it’s important to make sure you effectively communicate your needs and circumstances to the court, ensuring you gain a percentage that is genuinely representative of your contributions to your marriage.

This can be a complex process, which means you need an experienced Florida family law attorney supporting your efforts. Our lawyers have a deep understanding of the system and can collaborate with you in creating an aggressive strategy for a positive outcome.