How does a family court decide what is a non-marital asset?

Family court in Florida makes non-marital asset and marital asset decisions every day. How those decisions are made can be complex and technical, often requiring a deep understanding of how the couple managed their finances before the marriage, and during the marriage.

Obtaining that understanding of how couples managed their assets is key, because sometimes assets that each spouse owned individually can morph into a combination of marital and non-marital assets depending on how they were treated and handled during the marriage.

As an example, when John and Jane Smith married, Jane owned a small house that the couple never lived in, but kept as a rental property. John, a real estate agent, was actively involved in managing the tenants, collecting the rents, maintaining the home in good working order. Marital funds were used several times to improve and upgrade the property.

• At the time they married, the home was worth $200,000 but by the time they divorced, the home was worth $250,000.
• Since John was actively involved in the increase in the property's value over the years he is entitled to half of the increase, or $25,000.

When deciding if an asset is non-marital, some of what the Family Court will be looking to see is:

• Was the asset owned prior to the marriage.
• What, if any, was the level of activity each spouse had in contributing towards its increase in value. Money that sits in a bank account that Jane brought to the marriage passively earning interest is likely to be considered entirely non-marital property.
• If acquired during the marriage, the Court will want to know if it was a gift or inheritance specifically to one of the spouses only.

A local divorce attorney can help you understand how your assets are likely to be categorized when you divorce so that you can do your best to plan and strategize for the best possible financial outcome of your divorce.