Equitable Distribution in Florida

Florida Attorneys for Asset & Debt Division in Divorce

Dividing assets and debts in a divorce can be one of the most challenging aspects of the legal process. Florida follows the principle of equitable distribution, meaning that marital assets and liabilities are divided fairly—but not necessarily equally—between spouses. Courts consider various factors to determine what is equitable, taking into account the financial contributions and circumstances of both parties.

At The Virga Law Firm, P.A., we help clients navigate matters of property division, debt division, and equitable distribution disputes to ensure their property rights are protected. Whether you need assistance categorizing marital and non-marital assets, disputing the classification of certain debts, or ensuring a fair division of property, our experienced attorneys can help.

Our Florida property division lawyers serve clients across the state from offices in Orlando, Pensacola, Navarre, Panama City, and Fort Walton Beach. Call (800) 822-5170 or contact us online.

Understanding Equitable Distribution in Florida: Marital vs. Non-Marital Property

Equitable distribution refers to how assets and debts are divided in a Florida divorce. While many assume this means a 50/50 split, Florida courts take a case-by-case approach to determine what is fair based on each spouse’s contributions and circumstances.

Before assets and debts can be divided, the court must determine what is considered marital property and what remains separate (non-marital) property.

Marital Property includes:

• Assets acquired during the marriage, regardless of whose name is on the title.
• Increases in the value of non-marital property due to marital efforts.
• Retirement benefits accumulated during the marriage.
• Joint bank accounts, investments, and real estate.
• Gifts given between spouses.

Non-Marital Property includes:

• Assets acquired before the marriage.
• Inheritances and gifts received by one spouse from third parties.
• Income earned from non-marital assets (unless commingled with marital assets).
• Assets protected by a prenuptial or postnuptial agreement.

Properly identifying and categorizing these assets is crucial, as commingling non-marital assets with marital property may make them subject to division.

Can Inherited Property Become Marital Property?

Many people assume that inherited property is always considered non-marital and protected from equitable distribution. While this is generally true, certain actions can transform inherited assets into marital property, making them subject to division in a divorce.

According to Florida case law (Lakin v. Lakin, 901 So.2d 186, 190), courts look at the intent and conduct of the recipient spouse to determine whether an inheritance remains non-marital or becomes marital property. Key factors include:

• Commingling of Funds – If an inheritance is deposited into a joint bank account or mixed with marital funds, it may be classified as a marital asset.
• Title Changes – If the recipient spouse adds their spouse’s name to the title of an inherited home or asset, the court may presume it was a gift to the marriage.
• Use of Funds for Marital Purposes – If an inheritance is used to improve the marital home, pay off joint debts, or benefit both spouses, it may be considered marital property.
• Efforts by the Other Spouse – If the non-recipient spouse contributed to increasing the value of an inherited business or property, they may have a claim to a portion of the asset.

How to Protect Inherited Property in a Florida Divorce

To ensure that inherited assets remain separate property, individuals should take proactive steps, including:

• Keeping inherited funds in a separate account and avoiding deposits of marital funds.
• Avoiding title changes that add a spouse’s name to inherited real estate or assets.
• Executing a prenuptial or postnuptial agreement specifying how inherited property should be treated in the event of divorce.

If you have received or expect to receive an inheritance, it is important to work with an attorney to structure your finances properly and avoid unintentionally turning non-marital assets into marital property.

Dividing Marital Debts in Divorce

Just as assets are divided, marital debts must also be distributed between spouses. Debts that are generally considered marital liabilities include:

• Mortgages and loans acquired during the marriage.
• Joint credit card debt.
• Medical debts incurred while married.
• Business debts if both spouses benefited.

Debts that may be classified as non-marital liabilities include:

• Debts incurred before marriage.
• Student loans taken out before the marriage.
• Credit card debt accumulated by one spouse for personal, non-marital expenses.

Dividing debts can become a sticky issue in divorce. Some key factors that can affect the process include: 

• If one spouse incurred debt for personal use only, such as gambling losses or secret purchases, the court may assign that debt solely to them.
• If one spouse intentionally wasted or depleted marital assets, such as by excessive spending or hiding money, the court may adjust the division to compensate the other spouse.
• If debts were accumulated after the divorce was filed, they may not be considered marital debts.

Proper documentation is critical in debt disputes. We can help analyze financial records, credit statements, and other evidence to ensure a fair distribution of liabilities.

How Courts Divide Property and Debt in Florida

Florida law provides courts with broad discretion when determining how to distribute assets and debts. Factors that may influence property division include:

• Each spouse’s financial contribution to the marriage.
• Each spouse’s non-financial contributions, including homemaking and childcare.
• The length of the marriage—longer marriages may result in more equal distribution.
• The economic circumstances of each spouse, including income, earning potential, and financial needs post-divorce.
• Any interruptions in one spouse’s career to support the other spouse or raise children.
• Whether one spouse contributed to the other’s career or education.
• The desirability of keeping certain assets intact, such as a family business or professional practice.
• The best interests of any minor children, particularly regarding who remains in the marital home.
• Any intentional dissipation or waste of marital assets, such as reckless spending, hidden assets, or financial fraud.

The court’s goal is to reach a fair resolution based on the unique circumstances of the case.

Common Challenges in Equitable Distribution

Equitable distribution can become contentious when disputes arise over the classification or valuation of assets and debts. Some of the most common issues include:

• Hidden or Secret Assets – One spouse attempts to conceal income, property, or investments.
• Undervaluing or Overvaluing Assets – Intentionally misrepresenting the value of real estate, businesses, or personal property.
• Commingling Non-Marital Assets – Mixing separate assets with marital funds, making them eligible for division.
• Debt Accumulation Without Spousal Knowledge – One spouse secretly incurs significant debt, leading to disputes over responsibility.

We work with financial experts, forensic accountants, and appraisers to ensure a fair and accurate assessment of all assets and debts.

Florida Equitable Distribution FAQ

Does Equitable Distribution Mean a 50/50 Split?

No. Equitable distribution means a fair, not necessarily equal, division of assets and debts. The court considers various factors to determine what is just in each case.

Are Assets Always Divided in Divorce?

No. Non-marital property remains with the original owner, while only marital property is subject to division. However, assets can become commingled, making them eligible for distribution.

Who Is Responsible for Credit Card Debt in Divorce?

If the debt was incurred for the benefit of the marriage, it is typically considered marital debt and divided accordingly. However, if one spouse used credit cards for personal, non-marital expenses, the court may assign that debt to them.

What Happens If My Spouse Wasted Marital Assets Before Divorce?

If a spouse intentionally depleted marital funds through reckless spending, gambling, or financial misconduct, the court may compensate the other spouse by awarding them a larger share of the remaining assets.

Can I Keep the Marital Home After Divorce?

Possibly. If children and child custody cases are involved, the court may grant exclusive use of the home to the custodial parent. In other cases, the home may be sold, or one spouse may need to buy out the other’s share.

Speak With a Florida Equitable Distribution Lawyer Today

Dividing assets and debts during a divorce requires strategic legal representation to ensure a fair and accurate distribution. At  The Virga Law Firm, P.A., we are committed to protecting your financial interests and advocating for equitable solutions in divorce cases.

Our experienced attorneys work with business valuation experts, forensic accountants, and financial professionals to ensure assets and debts are properly classified and distributed. If you are facing a divorce and need legal assistance with equitable distribution, we are here to help.

Call (800) 822-5170 or contact us online for a confidential consultation.