Community property is a legal concept used in a handful of states, including California, Texas, and Arizona. Under the community property system, any property acquired by either spouse during the marriage is considered jointly owned, regardless of who earned it or whose name is on the title.

That means income, real estate, savings, and debts acquired during the marriage are typically split 50/50 between both parties in a divorce in those states, with few exceptions.

Florida, however, is NOT a Community Property State. Instead, Florida follows equitable distribution rules, which differ significantly from community property laws.

Understanding how this distinction affects your rights can help you better prepare for divorce or separation, and protect your financial future.

What Does Equitable Distribution Mean in Florida?

Since Florida is not a community property state, property division doesn’t automatically mean a 50/50 split. Instead, Florida follows the principle of equitable distribution, which focuses on fairness over strict equality.

The court will aim to divide assets and debts in a way that is just and reasonable, taking into account a variety of factors, such as:

  • The length of the marriage: Longer marriages tend to involve a greater degree of shared financial entanglement, which may influence a more even division of property. In shorter marriages, courts may lean toward each party retaining the assets they brought into the relationship.
  • Each spouse’s financial circumstances: The court will assess each party’s income, earning capacity, employability, and overall financial position when deciding who should receive which assets or how debts should be divided.
  • Contributions to the marriage: This includes both financial and non-financial contributions. For example, a spouse who was a stay-at-home parent or homemaker may still be entitled to a fair share of the marital estate, even if they did not directly earn income because they made important non-financial contributions to the household.
  • Interruption of educational or career opportunities: If one spouse gave up educational or career advancement opportunities to support the other spouse’s career or to raise children, the court may compensate for that sacrifice during the property division.
  • Contributions to the career or education of the other spouse: Financially supporting a spouse through school or job training, especially when it results in increased income for that spouse, can impact how property is divided.
  • The desirability of keeping certain assets intact: Courts may try to keep specific assets, like a family business or the marital home, with the spouse who is best positioned to manage or retain it, particularly when it aligns with the best interests of the children or the financial stability of either party.
  • Intentional waste or destruction of marital assets: If one spouse intentionally depletes or misuses marital funds (in situations such as gambling losses or luxury spending on an affair), the court may award a larger share of the remaining assets to the other spouse to compensate.
  • Any other relevant factor the court deems necessary: Judges have discretion to consider circumstances unique to your case, such as health conditions, parental responsibilities, or previous misconduct, when determining what’s equitable.

So while a 50/50 split may happen in some cases, it’s not guaranteed. Understanding how equitable distribution works is the first step in protecting your interests, especially when classifying what qualifies as marital property.

What Is Considered Marital Property in Florida?

Before dividing assets in a Florida divorce, the Court must determine which items qualify as marital property. Marital assets are those that were acquired by either spouse during the course of the marriage, regardless of whose name is on the title or account.

Examples of marital property include:

  • Income earned by either spouse during the marriage: Salaries, wages, and bonuses earned by both spouses are typically considered joint assets, even if only one spouse was working.
  • Joint bank accounts or investments: Accounts opened or contributed to during the marriage, regardless of whose name is listed, are usually marital property.
  • Retirement accounts accrued during the marriage: Pensions, 401(k)s, and IRAs funded during the marriage are generally split equitably; even if the account is only in one spouse’s name.
  • Real estate purchased during the marriage: Homes or investment properties bought during the marriage are presumed to be jointly owned, even if only one spouse is on the deed.
  • Debts incurred during the marriage: Just like assets, liabilities such as credit card debt, loans, or mortgages are considered marital obligations and may be divided between the parties.

Marital property is subject to equitable distribution, meaning the court will divide these assets in a manner it deems fair; which does not necessarily mean equally.

What Is NOT Considered Marital Property in Florida?

Non-marital property, also called separate property, refers to assets that belong solely to one spouse and are generally not subject to division in a Florida divorce. However, the distinction can become blurred if separate assets are commingled with marital ones.

Examples of non-marital property include:

  • Assets acquired before the marriage: Property owned by one spouse prior to the marriage typically remains that spouse’s separate property.
  • Gifts or inheritances given to one spouse individually: If a spouse receives a gift or inheritance and keeps it separate from joint finances, it usually remains theirs alone.
  • Personal injury settlements for one spouse: Compensation for personal pain and suffering is typically non-marital, though portions related to lost wages or medical expenses may be marital.
  • Property excluded by a valid prenuptial or postnuptial agreement: A properly drafted and executed agreement can exclude specific assets from being considered marital.

Understanding the distinction between marital and non-marital property is essential for protecting your financial interests. Misclassification can lead to an unfair division or loss of assets you may have a rightful claim to. With guidance from RTRLAW’s experienced family law attorneys, you can ensure your property is accurately categorized and your rights are protected.

Can Spouses Agree to a Property Division Without the Court?

Yes, and in fact, the court encourages it. Spouses can negotiate a marital settlement agreement that outlines how assets and debts will be divided. If the agreement is fair and legally sound, the Court will usually approve it without intervention.

Working with an experienced family law attorney can help ensure that your agreement protects your rights and complies with Florida law.

How Does Equitable Distribution Affect High-Asset Divorces?

For couples with substantial wealth, including multiple real estate holdings, business interests, investment portfolios, retirement accounts, and other high-value assets, equitable distribution becomes significantly more complex.

Our family law attorneys at RTRLAW work closely with financial experts, forensic accountants, and business valuation professionals to:

  • Accurately identify and classify marital vs. separate property: We ensure that property acquired before marriage or through inheritance is properly protected and marital assets are fairly accounted for.
  • Trace commingled funds: If separate property was blended with marital property, such as depositing inherited money into a joint account or using it to purchase a shared asset, we help clarify ownership through meticulous financial tracing.
  • Safeguard against undervaluation or asset concealment: High-value items like real estate, high-end cars, art collections, intellectual property, and deferred compensation can be undervalued or misrepresented. We fight to ensure full and fair disclosure.
  • Strategically advocate for your long-term interests: Whether negotiating a settlement or litigating in court, we approach each high-asset case with a strategy focused on preserving your financial stability and achieving a fair distribution of wealth.

In high-asset divorces, the objective isn’t just about dividing the estate; it’s about protecting what you’ve worked hard to build and ensuring your financial health well into the future.

With RTRLAW by your side, you gain a powerful team committed to navigating the legal and financial intricacies of your divorce. We help you make informed decisions, shield your assets, and move forward with confidence.

RTRLAW Can Help You Understand and Protect Your Property Rights

Understanding how Florida’s equitable distribution laws apply to your specific situation is essential; especially during a divorce or separation. Whether you’re concerned about protecting a family business, dividing property fairly, or securing your future after a long marriage, RTRLAW’s experienced family law attorneys are here to help.

We provide personalized legal guidance, aggressive advocacy, and compassionate support throughout the divorce process.

Call 1-833-HIRE-RTR or fill out the contact form on our site to schedule a confidential consultation. Let us help you protect what matters most.