Equitable distribution is easily misunderstood. One of the reasons for this may be that people associate equitable distribution with a 50/50 division of assets and debts. However, equitable distribution does not mean an equal 50/50 split. That would only occur in a state that has community property laws. Community property states assume that everything acquired during a marriage (debts, liabilities, and assets) are owned jointly—regardless of how much money each person contributed.Florida is not a community property state.
Married couples acquire assets, make investments, and take on debts during the marriage. All of which must be divided before the marriage can be dissolved. By understanding the principles connected with equitable distribution, you will have a better appreciation of how your assets get divided during a divorce.
Understanding Equitable Distribution
During the divorce process, marital property gets divided equally but fairly. Although this may result in an even 50/50 split, it doesn’t have to.. For instance, a judge is not only going to look at how much money you will make but will also consider how much you are going to make. If you were not the person who provided an income to the household, that does not mean that you are not entitled to any of it.
A judge looks at what you contributed, and that extends beyond money. One spouse may have earned the majority or entirety of the household income, but the other spouse’s actions enabled them to do so. Many people intentionally put their careers on hold or outright leave them to be able to raise children. If you made this sacrifice, it has long-term financial consequences. That is why a judge will also consider this in terms of equitable distribution of assets. Additionally, the duration of your marriage is a factor. Someone who raised two children for 18 years and has been out of the workforce will face added challenges when the marriage is dissolved.
Equitable distribution only applies when a judge has to decide for you. Couples can negotiate how they intend to divide their marital property through their attorneys with a marital settlement agreement. Perhaps one spouse wants to retain the business. They may offer the other spouse the marital home in exchange for it and balance things out. When both people agree to the terms, they have successfully arrived at a division of property and assets independently without needing a judge to intervene.
C. Alvarez Law
Despite the length and complexity of the divorce process, you can hire legal counsel to support and advise you. The principles of equitable distribution apply to each person’s situation uniquely. If you have any additional questions or wish to speak to an attorney about a family law matter, contact C. Alvarez Law to schedule your consultation.
C. Alvarez Law
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