Equitable Distribution is the division of assets and liabilities. “Equitable” means fair and does not necessarily imply a 50/50 split of assets and liabilities. The assets divided can be vested or non-vested. The assets and liabilities considered can be contingent or non-contingent.

In Florida during a dissolution of marriage case, the court will equitably divide all the assets and all the liabilities acquired during the course of the marriage. The assets may include those from marital labor or from a gift from either spouse to the other. An asset or liability may be considered marital regardless of how it is titled or in whose name it is held.

Non-marital assets, typically those acquired before the marriage, are generally not subject to equitable distribution. There are very limited exceptions to this rule that must be evaluated on a case by case basis. If a non-marital asset gains value during the marriage, that increase may be considered marital. In some situations an inheritance or a non-spousal gift may also be considered non-marital.

Marital assets include homes, cars, business interests, retirement accounts, bank accounts, jewelry and virtually any other item or account that was acquired during the marriage or that gained value during the marriage because of marital labor.

Marital liabilities include mortgages, loans, credit card debts, tax liabilities and any other debt incurred during the marriage. If a debt was incurred prior to the marriage, that debt may be considered non-marital.

A party may plead for an unequal distribution of assets and liabilities. The court may consider an unequal distribution for situations involving dissipation of marital assets or other situations where equity requires one party be awarded a greater share of the assets or liabilities.

Equitable Distribution is a very complex part of the law and it is vitally important to identify all assets and liabilities for the court to consider.

Every case and situation is unique. Your attorney will evaluate your individual situation and advise you how best to proceed regarding these and other issues. The above statements are made for informational purposes only and should not be considered legal advice. The Law Offices of Thomas J. Donnelly shall not bear responsibility for any actions taken based upon the above information. Seeking professional help for your legal problems and concerns is imperative.