Property division can be one of the most frustrating and confusing aspects of the Florida divorce process. During property division, you must split all your marital property, including your home, bank accounts, and retirement savings, in accordance with equitable distribution laws. The last thing you want is to make mistakes that cost you money or assets you’ve worked hard for. Unfortunately, many people make avoidable mistakes that cost them financially and emotionally in the long run. Below, we share some of the most common mistakes to avoid during property division in Florida.
- Assuming Everything Will Be Split 50/50
You might assume that because Florida is an equitable distribution state, everything should be divided equally during divorce. This is not exactly the case. Florida law says that marital property should be split justly or fairly between spouses. It does not say “equally.” While an equal division is possible, it is not always the case.
When determining how to divide marital property between spouses, courts consider several factors such as;
- Each spouse’s contribution to the marriage
- Each spouse’s financial situation
- Duration of the marriage
- The desirability of retaining assets
By understanding how Florida law treats property division, you can avoid unrealistic expectations.
- Not Identifying Separate Property Correctly
In Florida, only marital property is subject to equitable distribution during divorce. Separate property belongs to the spouse who came into the marriage with it. To protect your assets, it is crucial to accurately identify separate property. Ensure you have proof that something is separate property, and thus, not subject to equitable division. If you cannot prove that something is separate property, the court could assume it is marital property.
- Hiding or Overlooking Hidden Assets
Some spouses believe they can hide assets during a divorce to protect what they consider rightfully theirs. This is a big mistake. Don’t transfer assets to other people or delay business profits so they don’t count as income. Also, don’t “forget” to disclose a bank account or another asset. Florida law requires both spouses to be honest and accurate during the financial disclosure process. If the court finds hidden assets, you may be penalized, and your spouse may be granted a larger portion of marital property.
- Ignoring Debts
Property division in Florida is not just about assets. Marital debts are also subject to equitable distribution. Don’t ignore shared credit card debts, loans, and other debts or assume your spouse will handle them, as this could lead to financial issues down the line. Ensure you identify all debts and clearly state responsibility for each debt in your divorce settlement.
- Ignoring Tax Consequences
It is easy to get caught up in the property division process and overlook the importance of considering taxes. Some assets may appear good on paper, but could carry unexpected, significant tax consequences. It is crucial to consult a tax professional or financial planner before agreeing to any property division. Understanding the tax implications of assets can help you negotiate a truly fair settlement.
- Allowing Emotions To Drive Decisions
Finally, while divorce is emotional, you should not make property division decisions out of anger, resentment, or guilt. Such decisions can cost you significantly in the future. Always take a moment to pause and consider the decision you are about to make. It’s also advisable to get professional advice before making any major decisions.
Contact Us for Legal Help
If you’re going through a Florida divorce, contact Tampa Bay Legal Center for legal guidance and help reaching a fair resolution.
