Articles Posted in Property Division

The short answer to this question is, unfortunately yes. If, in a divorce, one party is granted sole exclusive use and possession of the former marital home the other party could still be held responsible in the event of a default on the mortgage.

Thus, even if the former marital home is deeded to one party the other party’s name is still on the mortgage and can still be held responsible. If the party with possession of the home fails to pay the mortgage, the bank has the option to come after the other party.

During the divorce proceedings the party without the home can ask for their name to be removed but this is likely not to occur. Also, the Court can order the party with possession of the home to try and refinance to get the other party’s name off the mortgage, but in todays market this is not a likely solution.

The Daily Pitch is reporting that Frank and Jamie McCourt have reached a divorce agreement that will give Frank McCourt, the Los Angeles Dodgers Owner, sole control over the Dodgers. Jamie McCourt, on the other hand, will be leaving the marriage with a hefty $130 million in her pocket. The settlement is believed to be the costliest divorce in California history.

As a Jacksonville Divorce Attorney, I can’t help but think of how less costly the McCourt’s divorce could have been had they worked together and agreed to settle nearly two years ago. In Jacksonville, I see clients argue over the most insignificant things because they are experiencing so many emotions due to the divorce. I can only assume that is what the McCourts did, except for on a much larger financial scale.

I personally tell my Jacksonville clients to look at the big picture and to try to take emotions out of the decision making as much as possible. This is often a difficult thing for clients to do, however; I know in the long run it is the best way to go about a divorce.

The National Federation of Independent Business estimates that there are more than 1 million husband-and-wife business partnerships. Considering the divorce rate has remained relatively stable during the recession, it is only natural that some of those partnerships end in divorce. Almost all divorces can get tricky when it comes to dividing assets; however, co-ownership of a business makes the separation much more complicated.

Some simply decide to sell the business and split the assets. However, it is difficult to sell a small business, especially in the current economy. It is important to consider other options.

For example, you might consider a split of the business. This is generally possible only when you and your business partner have independent clients, such as a doctor’s office. Alternatively, the couple could remain in business as a partnership. This is difficult for obvious reasons. One way to reduce the possibility of making hasty decisions to spite the other is to bring in an independent board of directors. A more common solution is for one of the spouses to buy the other out. This requires a good accountant to help value the business.

Whether or not an asset is “marital” or “nonmarital” is often a key issue in a divorce. Marital assets are generally considered jointly owned by both husband and wife, and it is usually up to the court to decide how those assets will be distributed. Nonmarital assets, however, are considered owned by only one of the spouses and are generally free from distribution in a divorce. You should be aware that liabilities –debts– are treated the same way as assets.

Florida Statute 61.075 addresses this issue and defines marital and nonmarital assets. Marital assets include assets acquired during the marriage, the increase in value of nonmarital assets (if the increase is the result of contribution from both spouses), interspousal gifts during the marriage, and all benefits accrued during the marriage, such as retirement funds, pension, profit sharing, and insurance plans.

Nonmarital assets include assets acquired prior to the marriage, assets acquired during the marriage by gift or inheritance, assets excluded from being considered marital by written agreement (such as a prenuptial agreement), and income derived from nonmarital assets, unless the income was “treated, used, or relied upon by the parties as a marital asset.”

Florida law stipulates that marital assets and liabilities are to be divided equitably upon divorce, in legal jargon this is referred to as equitable distribution. However, equitable distribution may not always mean equal division. Each and every divorce case is different.

Florida courts look at many factors when determining which party gets what and how much they get. Before dividing property in a divorce the court must first decide what is marital property and what is nonmarital property.

As a Jacksonville Family Law Attorney, I am frequently involved in the dissolution of assets process. Should you find yourself facing an upcoming divorce, contact a Jacksonville Family Law Attorney today.