How Inheritances And Trusts Are Treated In A Florida Divorce For Asset Division

When a marriage dissolves, understanding the laws surrounding the division of assets can be complex and confusing. In Florida, Chapter 61 of the Florida Statutes addresses these issues. Below, The Law Offices of Matthew Z. Martell, P.A. discusses how inheritances and trusts are treated in divorce for asset division, as defined by these statutes.

Nonmarital And Marital Assets: The Basics
Firstly, it’s crucial to understand the difference between marital and nonmarital assets, as these terms have specific legal meanings. According to the statutes, marital assets are those acquired by either spouse or jointly by them during the marriage. They can include things like homes, cars, businesses, retirement accounts, and even debts incurred during the marriage.
Nonmarital assets, on the other hand, are typically those assets acquired by either party before the marriage or assets acquired separately by either party as a result of a gift, including inheritances and trusts, intended to belong to one spouse only.

How Inheritances And Trusts Are Treated
When it comes to the division of assets, Florida law requires an “equitable distribution” of marital assets, which means the division should be fair but not necessarily equal. Nonmarital assets like inheritances and trusts, however, are generally excluded from this division.

In other words, if you’ve received an inheritance or trust either before or during the marriage, and you haven’t used or relied upon this income as a marital asset, it will typically be set apart to you as a nonmarital asset. It’s crucial to note, though, that this can change if the nonmarital asset has been “commingled” with marital assets, such as depositing an inheritance into a joint bank account.

Appreciation Of Nonmarital Assets
It’s also important to note that the appreciation of nonmarital assets, including trusts and inheritances, may be considered a marital asset if the appreciation resulted from the efforts of either party during the marriage, or from comingling.
So, if your inheritance or trust increased in value during your marriage because of efforts made by you or your spouse, or because marital funds were used in some way, which increase in value could be considered a marital asset and could be divided equitably in a divorce.

Ensuring Fair Division
Florida law requires courts to consider a wide range of factors when determining how to divide assets equitably. These factors include the duration of the marriage, the economic circumstances of the parties, the contribution of each spouse to the marriage, any interruption of personal careers or educational opportunities, and more. The goal is to ensure a fair distribution that considers each party’s contributions and needs.

Asset Identification And Division
Florida law requires clear identification of both marital and nonmarital assets in contested dissolution actions. This involves determining the value of significant assets and deciding which spouse should be entitled to each asset. Any division of marital assets or liabilities must be supported by factual findings in the judgment, based on evidence and the factors outlined in the statute.

Equitable Distribution Without Alimony Consideration
Interestingly, Florida law allows courts to distribute marital assets and liabilities equitably without considering alimony for either party. Alimony consideration happens only after the equitable distribution of marital assets and liabilities.

Monetary Payments As A Form Of Asset Division
In some cases, the court may order a monetary payment, in a lump sum or in installments, to facilitate the equitable division of marital assets and liabilities. The understanding of how inheritances and trusts are treated in divorce for asset division can be quite complicated. Therefore, legal counsel should be sought to protect your interests and rights.

FAQs
Are Inheritances Considered Marital Property In Florida?
In Florida, any assets acquired separately by either party through gifts or inheritance are usually considered nonmarital assets. This means if you’ve inherited assets before or during your marriage, these assets are generally not considered marital property and won’t be divided in the event of a divorce.

What Happens If I Put My Inheritance Into A Joint Account Or Marital Home?
When you commingle an inheritance (a nonmarital asset) with marital assets, it might be considered a marital asset subject to division. For instance, if you put your inheritance money into a joint account or use it towards a marital home, it may become a marital asset.

Can A Trust Protect My Assets In A Divorce?
Assets held in certain types of trusts may be protected from division in a divorce. However, this can be complex and may depend on the type of trust, when it was established, and whether or not the other spouse has any beneficial interest in it.

Are Assets Acquired During Marriage Always Considered Marital Property?
Generally, yes. The law considers assets acquired (and liabilities incurred) during the marriage as marital property, whether they’re acquired individually or jointly. But exceptions do apply, such as assets acquired separately by noninterspousal gift or inheritance.

What Happens To The Passive Appreciation Of A Nonmarital Property Like A Home?
If a nonmarital property (like a home) appreciates in value, the passive appreciation could be considered marital property if it is a result of the efforts of either party or from the contribution or expenditure of marital funds.

What If I Cannot Prove My Inheritance Is Nonmarital Property?
If you cannot clearly identify and provide proof that an asset is nonmarital, it might be considered a marital asset and could be subject to division. Keeping separate records and avoiding commingling of assets can help prevent this.

Sarasota Florida Divorce Lawyer
In the complexities of divorce, especially when inheritance and trusts are involved, you need an ally with unrivaled experience, integrity, and compassion. The Law Offices of Matthew Z. Martell, P.A. promise not only exceptional legal counsel but also personalized attention tailored to your unique circumstances. Located in Lakewood Ranch and Sarasota, Florida, our office stands as an advocate for residents of Sarasota, Bradenton, Venice, and Lakewood Ranch. We have a successful history of representing professionals and high net worth individuals, skillfully protecting their financial interests and advocating for equitable outcomes in family law matters. Put your trust in our esteemed firm, known for accountability, honesty in fee estimation, and empathetic, prompt response to client concerns. Don’t navigate the stormy waters of divorce alone. Connect with us today for your free 15-minute phone consultation. Reach out at (941) 556-7020 or online and make your first step towards clarity and peace of mind.