When Does Separate Property Become a Marital Asset?

Property division is one of the most contentious issues during many divorce cases. Under Florida’s equitable distribution laws, marital assets are divided fairly during divorce, although this does not necessarily mean an equal division. Marital assets include any property acquired during the marriage while separate property includes assets owned individually by spouses before the marriage.

There are times, though, when separate property can become marital property and therefore, subject to division. Below, our Orlando property division lawyer explains when separate property may be classified as marital assets.

Commingled Inheritances

Under Florida law, inheritances are typically considered separate property if they were given solely to one spouse, the property is kept separate, and marital funds are not used to improve it or maintain it. Commingling an inheritance can result in an inheritance being classified as marital property.

For example, if someone received financial funds as their inheritance and they placed it into a joint bank account they share with their spouse, this can result in it becoming a marital asset. Or, a person may inherit a home. If marital funds are used to improve it, the property could be considered a marital asset and not separate property.

Homes Acquired Before a Marriage

One of the most combative issues in divorce involves premarital real estate. Again, property acquired before the marriage is typically considered separate and so, is not subject to division. However, if marital income is used to pay the mortgage on a premarital home, or the other spouse is added to the title, a premarital home may be deemed marital property.

Business Growth

A business owned previous to the marriage may qualify as separate property, but there are also times when businesses are classified as marital property. This can occur if the non-owner spouse works in the business, or if marital funds are used to help the business. Using business accounts for personal expenses can also result in a business being classified as marital property.

Retirement Account Growth 

Retirement accounts often make up the bulk of a marital estate and dividing them can become very complex. Typically, any contributions made to the retirement account, as well as growth on those contributions, are classified as separate property. Any contributions made during the marriage, though, and the growth on those contributions, is generally classified as marital property. Loans taken from a retirement account during the marriage, or any withdrawal used for household or marital purposes can also complicate the division of these assets.

Our Property Division Lawyer in Orlando Can Help

Property division is not only a contentious issue during divorce, but it can also become very complex. At Anderson & Ferrin, P.A., our Orlando property division lawyer can review the facts of your case, determine what assets are marital and separate, and help ensure you keep the property that means the most to you. Call us now at 407-412-7041 or contact us online to schedule a consultation and to learn more about how we can help with your case.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html