How to Divorce in Florida Rule Number One: The Importance of the Equitable Distribution Statute
Equitable distribution is a phrase well-known by those heading for Florida divorce. It’s especially relevant due to the affect it can have on Florida net worth. The goal of the Statute is that each party walks away with their fair share of the marital estate following divorce.
The first step is figuring out if the property is marital or separate. There’s a cut-off date for classifying assets and liabilities as marital property under the Florida equitable distribution statute. This is the earliest of the dates the parties either enter into a valid Florida legal separation agreement or the date of filing for divorce. It’s also important to note a community property state adheres to a different set of rules.
How to Divorce in Florida Rule Number Two: Know How Equitable Distribution Can Affect Florida Net Worth
It is especially relevant to understand that a 50/50 split of the parties Florida net worth isn’t guaranteed. Consequently, The Law Office of Jordan Gerber, P.A. knows that sometimes all it takes is a little finesse and ingenuity of an aggressive Family Law attorney (cough) to tip the scale. There are many issues in not only classifying assets and liabilities, but also when the dissipation of marital money comes into play. As a result, determining property rights can end up being one of the most contentious aspects of the divorce process.
The Details of Florida Equitable Distribution Statute 61.075 are Important when Attempting to Maintain Florida Net Worth
A Palm Beach County court must consider several factors during a courts equitable dividing of property. Florida Equitable Distribution Statute 61.075 contains the framework.
- The contribution to the marriage by each spouse. Additionally, this includes contributions to the care and education of the children and services as homemaker.
- The economic circumstances of the parties.
- The duration of the marriage.
- Any interruption of personal careers and educational opportunities of either party.
- The contribution of one spouse to the personal career and educational opportunity of the other spouse.
- The desirability of retaining any asset, intact and free from any claim or interference by the other party. Most importantly, an interest in a business, corporation, or professional practice.
- The contribution of each spouse to the acquisition, enhancement, and production of worth net income. Or the improvement of, or the incurring of liabilities to, both the marital and non-marital assets.
- The desirability of retaining the marital home as a june residence for any child of the marriage, or any other party.
- The intentional dissipation, waste, depletion, or destruction of marital assets after the filing of the petition for dissolution of marriage or within 2 years prior.
- Any other factors necessary to do equity and justice between the parties.
How to Divorce in Florida Rule Number Three: If You’re Convinced Your Entire Life is Going to Hell in a Handbasket, R-E-L-A-X
As noted, one of the factors of equitable distribution is the desirability of retaining any asset intact and free from any claim or interference by the other party. This is most relevant when one party is an entrepreneur or has a significant interest in a family business or corporation that makes up a significant portion of his or her Florida net worth. Furthermore, an aggressive family law attorney will always advise a business valuation for the non-owning spouse to beef up the value. Or, alternatively, to diminish it to the lowest possible denominator if on the other side of the table.
The Importance of a Business Valuation to Equitable Distribution
Business valuations use three common approaches. This transforms the business interest into a dollar amount to plug into an equitable distribution scheme.
The income approach assumes that all of the assets are indistinguishable parts of the company. There’s no independent separation of the value of either the hard or intangible assets. Consequently, the focus of the income approach is the entity’s ability to generate earnings or cash flows.
This differs from the concept of the market approach. This is because, here, value is determined by reference. This is done by using reasonably comparable companies for which transaction values are known. This information is learned as a result of either the entity being publicly traded or private companies being sold and the terms of the transactions disclosed.
Finally, the net asset based approach is most prevalent for purposes of equitable distribution in Florida. It calculates the economic worth of a company’s assets minus its liabilities. It’s sometimes called a book value approach. Except this adjusts each of the assets and liabilities on a balance sheet to fair market value.
How To Divorce In Florida Rule Four: Timing a Valuation is Important for Equitable Distribution
Furthermore, a valuation can be conducted any time from the date of filing to the date of the final hearing. In Florida, it is up to the judge when the date of valuation should occur. Certain things can affect the value for purposes of equitable distribution such as:
- A change in value due to the post-filing efforts of a party
- Economic downturn of either the industry or the economy as a whole
- A dissipation of company assets after the date of filing
- Bad faith efforts of a party to delay divorce
- A windfall to the company, post filing
How to Divorce in Florida Rule Five: K.I.S.S. and Get Familiar with Equitable Distribution
At The Law Office of Jordan Gerber, P.A., we understand how difficult figuring out how to divorce in Florida can be. Our family practice is committed to safeguarding your interests in any Florida division of property and ensuring you receive all that you are entitled to. The last thing you want after emerging from Palm Beach County family court is a feeling of regret.
Click Boca Raton Aggressive Family Law Attorney to schedule your consultation. Proudly Serving Boca Raton, Delray Beach, West Palm Beach, and all of Palm Beach County, South Florida.
Boca Raton Divorce Lawyers Practice Areas Include:
Florida Legal Separation
Simplified Dissolution of Marriage
High Net Worth Divorce
Florida Alimony Laws
Maintaining Or Increasing Your Florida Net Worth
Legal Separation Agreement
Division of Property
Dissipation of Marital Assets
Contempt and Enforcement