Equitable Distribution in Florida Divorce

Florida is an equitable distribution state, which means that marital property is divided fairly — but not necessarily equally — when a couple divorces. The governing statute, Florida Statutes Section 61.075, sets out the framework courts use to identify, value, and divide assets and liabilities accumulated during the marriage.

Understanding how equitable distribution works in Florida is essential if you are facing divorce. The outcome depends on several statutory factors, the distinction between marital and nonmarital property, and the date the court uses as its cutoff for accumulation. This article explains each of these elements and how they affect the property division process.

Marital vs. Nonmarital Property

The first step in any Florida equitable distribution case is classifying each asset and liability as either marital or nonmarital. Only marital property is subject to division.

Marital property includes:

• Assets and debts acquired by either spouse during the marriage, regardless of whose name is on the title
• The increase in value of nonmarital assets that resulted from the efforts of either spouse or the use of marital funds
• Interspousal gifts made during the marriage
• Vested and nonvested retirement benefits and pensions accrued during the marriage
• All real and personal property held as tenants by the entireties

Nonmarital property includes:

• Assets owned by either spouse before the marriage
• Inheritances received by one spouse individually, even during the marriage
• Income derived from nonmarital assets, unless that income was treated as a marital asset (for example, deposited into a joint account and used for household expenses)
• Assets excluded by a valid prenuptial or postnuptial agreement

The classification can become complicated when marital and nonmarital funds are commingled. If one spouse owned a bank account before marriage but deposited marital earnings into that account for years, tracing the nonmarital portion requires careful forensic analysis. Courts will attempt to trace the nonmarital component, but if the commingling is too extensive, the entire asset may be deemed marital.

For a broader look at how different states handle property classification, see our guide on community property vs. equitable distribution.

The Date of Filing Cutoff

Florida uses the date the petition for dissolution of marriage is filed as the cutoff date for determining marital assets and liabilities. Under FL Stat 61.075(7), any asset acquired or liability incurred after the filing date is generally treated as nonmarital — unless it was acquired using marital funds or effort.

This cutoff creates a clear line, but it also creates strategic considerations. If one spouse anticipates a divorce filing, they may attempt to move assets or incur debts before the petition is filed. Courts are aware of this behavior and address it through the dissipation doctrine.

Dissipation of Marital Assets

Dissipation occurs when one spouse intentionally wastes, depletes, or destroys marital assets in anticipation of or during the divorce. Common examples include:

• Spending large sums on an extramarital relationship
• Gambling away marital funds
• Making extravagant purchases unrelated to the marriage
• Transferring assets to third parties to put them beyond the court’s reach
• Deliberately destroying property

Under Florida law, if the court finds that one spouse dissipated marital assets, it can compensate the other spouse by awarding a larger share of the remaining marital property. The burden is on the spouse alleging dissipation to show that the spending was excessive, unusual, and not for a legitimate marital purpose.

Statutory Factors Under FL Stat 61.075

When dividing marital property, Florida courts begin with the presumption that the distribution should be equal. The court may deviate from an equal split based on relevant factors, which include:

The court is not required to weigh each factor equally. In practice, contribution to the marriage, economic circumstances, and duration tend to carry the most weight.

Business Valuation

When one or both spouses own a business, equitable distribution becomes significantly more complex. The court must determine whether the business is marital or nonmarital property, what it is worth, and how to divide that value.

Florida courts commonly use three valuation methods:

• Income approach: Projects future earnings and discounts them to present value. This is most appropriate for profitable, established businesses.
• Market approach: Compares the business to similar businesses that have recently been sold. This works best when comparable sales data is available.
• Asset approach: Calculates the net value of the business’s tangible and intangible assets minus liabilities. This is often used for asset-heavy businesses or those being liquidated.

Courts typically rely on expert testimony from forensic accountants or business valuation professionals. If the spouses cannot agree on a single expert, each side may retain their own, and the court will evaluate the competing valuations.

If one spouse started the business before the marriage, only the increase in value during the marriage — attributable to marital effort or funds — is subject to equitable distribution. This concept, called enhanced earnings or active appreciation, requires careful analysis to separate marital from nonmarital contributions to business growth.

Special Equity

Florida recognizes the concept of special equity, which protects a spouse’s nonmarital contribution to a marital asset. For example, if one spouse used a $50,000 inheritance as a down payment on the marital home, that spouse may be entitled to a special equity credit for that contribution before the remaining equity is divided.

Special equity claims require clear documentation showing the source of the nonmarital funds and their application to the marital asset. Without a paper trail, proving a special equity claim is difficult.

What to Do Next

If you are going through a divorce in Florida and need to understand how property will be divided, take these steps:

1. Inventory all assets and debts. Create a comprehensive list of everything you and your spouse own and owe, including bank accounts, real estate, retirement accounts, vehicles, and business interests.
2. Gather documentation. Collect financial statements, tax returns, property records, and any documents showing when assets were acquired and with what funds.
3. Identify nonmarital property. If you brought assets into the marriage, received an inheritance, or have a prenuptial agreement, gather evidence to support the nonmarital classification.
4. Watch for dissipation. If you suspect your spouse is hiding or wasting marital assets, document the evidence and raise the issue early in the proceedings.
5. Consult a Florida family law attorney. Equitable distribution cases involve complex financial analysis and strategic decisions that directly affect your financial future. Schedule a free consultation to discuss how Florida law applies to your situation.

For a general overview of the divorce process, see our complete guide to divorce.