For Florida couples who have been fortunate enough to live an affluent lifestyle, divorce can be a complex situation. Dividing property is one of the more difficult aspects of the case. There may be items of significant value that both sides either want to retain or would like to receive a share of as part of the divorce settlement.
Real estate often rises in value quickly and its sale can spark disputes as to how it may be split. Knowing the law for setoffs or credits of the sale of the property before moving forward is crucial to make sure there is a fair outcome.
What factors are considered with setoffs or credits for the marital home?
People who believe they are automatically entitled to receive credits or have the debt reduced via setoff for the sale of the marital home should know beforehand that it is not guaranteed. For this to happen, it must be part of their settlement agreement, be in the judgment when the marriage is dissolved, or be part of the equitable distribution in the final judgment.
A settlement agreement would make the case easier for everyone involved, but that is not always possible. If there is no settlement agreement, the court will weigh specific factors when making its decision. One factor is if a person is retaining the family home. This is common when there are children and the parents do not want to disrupt their lives and environment more than necessary.
If alimony is paid to the person in possession of the home, then the court will think about this in its decision-making process. Child support is viewed in the same context as alimony. The value of the property is also key. The party who is losing the use of the property will have their own concerns such as finding a new place to live. There are taxes, mortgage interest and other costs with the marital home. The court will analyze this as well as tax benefits.
With high level property disputes, having legal protection is crucial
The primary objective with this level of property division is to achieve a fair outcome. It is imperative to remember that the term equitable distribution does not mean equal. It means fair. This is vital as part of the entire case and includes setoffs and credits from the marital home. In high-asset divorce cases where property division is leaving the couple at odds, it is essential to have advice from experienced professionals who are skilled in helping those in this level of divorce.