If you have a high income or own many assets, you may be concerned about the impact divorce could have on your financial stability. This is understandable, since divorce involves the equitable distribution of marital property, which means marital property is fairly divided between spouses.
Feelings of stress and uncertainty are common but understanding the divorce process in Florida and knowing what steps you can take to prepare can help.
Marital and separate assets
Only marital assets are divided in a Florida divorce. Marital assets are generally those acquired during your marriage up until the date of filing for divorce. Separate assts are those you owned before marriage or any gifts or inheritances that have not mixed with marital property.
Equitable distribution factors
Equitably, or fairly, dividing marital property does not always mean equal. Factors courts examine to decide a fair distribution include the length of your marriage, contributions you made to the marriage and your current financial situation.
Preparing for your divorce before filing can help you protect your assets and set you up for maintaining financial stability post-divorce.
Gather financial documents
One of the first steps in the divorce process is disclosing and sharing financial information with your spouse. Gather all financial documentation, such as property deeds, bank statements, retirement statements and tax returns.
Open a separate bank account and start maintaining your income separately. This can help you start managing your finances independently.
Be careful about making any major transfers of funds or assets, as this can be viewed as attempting to shield assets from equitable distribution, which can lead to legal penalties.
Asset valuations
A valuation will likely need to be performed on high-value assets. Begin researching reputable and knowledgeable valuation experts.
When dividing retirement accounts, a qualified domestic relations order should be used. This will avoid tax penalties from withdrawing funds if you must split a retirement account with your spouse.
Divorce can be financially challenging, but understanding the law and preparing can set you up for success.
