Valuation Date of Property in Florida Divorce

Posted in Florida Family Law on September 6, 2024

Florida Statute 61.075 governs the equitable distribution of marital assets and liabilities during divorce proceedings. This statute outlines the principles and processes for dividing marital property in a manner deemed fair by the court, though not necessarily equal. The valuation of assets and liabilities is a key component of this process, ensuring that each party receives a fair share of the marital estate.

Under Section 61.075, the court is required to identify, classify, and value marital assets and liabilities. This process begins with distinguishing between marital and non-marital property. Marital property includes assets and debts acquired during the marriage, while non-marital property consists of assets that one spouse owned prior to the marriage or received as gifts or inheritances. Only marital assets and liabilities are subject to division under this statute.

The valuation of these marital assets and liabilities is crucial for a fair distribution. The statute does not specify a particular valuation date, but in practice, the date of filing for divorce is often used as a reference point. This date provides a clear snapshot of the financial situation at the start of divorce proceedings, which helps in dividing the property equitably. However, in cases where assets have significantly changed in value after the filing date, the court may consider different valuation dates or adjust its approach to ensure fairness.

Valuation involves assessing the current market value of assets such as real estate, vehicles, and personal property, as well as determining the balance of liabilities like mortgages, loans, and credit card debts. For complex assets such as businesses or retirement accounts, specialized appraisals may be necessary. These experts provide a detailed valuation based on their expertise, ensuring that both parties receive a fair portion of these assets.

The statute also requires the court to consider several factors when distributing marital property, including the contribution of each spouse to the marriage, the duration of the marriage, and the economic circumstances of each spouse. This holistic approach ensures that the division is not only based on the valuation of assets but also on a fair consideration of the contributions and needs of each party.

Ultimately, Florida Statute 61.075 aims to achieve a fair distribution of marital property by requiring a thorough and equitable valuation process. This ensures that each spouse receives an appropriate share of the marital estate, reflecting their contributions and financial circumstances.