It’s common for spouses to separate prior to, or contemporaneously with, the filing of the Dissolution of Marriage petition; in fact, sometimes spouses separate years before one of them finally decides to file the petition. Sometimes the spouse who moved out ceases to contribute to the mortgage on the marital home and other household expenses, such as needed repairs and maintenance. Clients often wonder how Florida courts will distribute the value of the marital residence under such circumstances. Florida is an equitable distribution state, meaning marital assets and debt are divided fairly, but not necessarily equally.
Once the home is categorized as marital, the trial court has discretion to determine the appropriate valuation date for the property, which depends on the particular facts of each case. Since there can be a sharp change in the value of real estate between separation and the initiation of divorce proceedings, as well as during the pendency of the proceedings themselves, the choice of valuation date can be significant.
Florida appellate courts have held that trial courts erred in valuing the marital home at the time of trial if the parties had been separated for a significant amount of time and only one spouse solely paid for the home’s mortgage, taxes, repairs, and other expenses related to the marital home since separation. In such cases, appellate courts have held the date of separation was the appropriate valuation date, so that the contributing spouse benefits from any increase in the home’s value since separation. Furthermore, it makes no difference whether the increase in the value of the marital home is due simply to passive market forces; instead, the relevant inquiry is whether the continued ownership of the marital home is due solely to the efforts of one spouse, such that the non-contributing spouse is no longer entitled to the benefit of passive appreciation after the separation.
If you’re going through, or contemplating, a divorce and seek guidance on equitable distribution in Florida, call the Rice Law Firm and schedule a consultation with one of our experienced Family Law attorneys.