How to Protect Your Assets in a Florida Divorce

How to Protect Your Assets in a Florida Divorce

Quick Answer: Focus on documenting separate property, understanding what's truly marital vs. non-marital under F.S. 61.075, and negotiating strategically. Never hide assets—courts punish this severely.

What the Statute Protects (F.S. 61.075(6)(b))

Non-Marital (Separate) Property

F.S. 61.075(6)(b) defines non-marital assets as: "Assets acquired and liabilities incurred by either party prior to the marriage, and assets acquired separately by either party by noninterspousal gift, bequest, devise, or descent."

These assets are NOT subject to division:

• Assets owned before marriage (must document value at marriage)
• Inheritances (even if received during marriage)
• Gifts from third parties to one spouse individually
• Income from non-marital assets (if not treated as marital)
• Assets excluded by valid prenuptial agreement

But: Per statute, "the presumption is overcome by a showing that the assets and liabilities are nonmarital"—meaning you must PROVE it.

What's At Risk (F.S. 61.075(6)(a))

Marital Property

The statute provides: "All assets acquired and liabilities incurred by either spouse subsequent to the date of the marriage... are presumed to be marital assets and liabilities."

Everything acquired during marriage is presumed marital and subject to division:

• Income earned during marriage by either spouse
• Retirement contributions during marriage
• Real estate purchased during marriage (even in one name)
• Businesses started or grown during marriage
• Investment gains during marriage
• Enterprise goodwill in closely held businesses (2024 amendment)

Legal Protection Strategies

1. Document Everything

Before divorce:

• Gather proof of pre-marital asset values
• Collect inheritance documentation
• Keep records of gifts received
• Document separate property ownership

Create a paper trail showing:

• What you owned before marriage
• What you inherited or received as gifts
• How separate assets stayed separate

2. Don't Commingle Assets

Separate property can become marital if you mix it:

Example of commingling:

• Putting inheritance in joint account
• Using pre-marital funds to pay joint bills
• Adding spouse to title of separate property

Keep separate property separate:

• Maintain separate accounts for non-marital funds
• Don't use inheritance for marital expenses
• Keep clear records if mixing was unavoidable

3. Trace Separate Property

If commingling happened, you may still protect assets through tracing:

• Show the original source was non-marital
• Document the path of the funds
• Hire forensic accountant if needed

4. Understand Enhancement (F.S. 61.075(6)(a)1.a.)

The statute specifically includes as marital: "The enhancement in value and appreciation of nonmarital assets resulting either from the efforts of either party during the marriage or from the contribution to or expenditure thereon of marital funds."

Separate property can become partially marital if:

• Marital funds improved it (renovations, mortgage payments)
• Either spouse's efforts increased its value
• Example: Business started before marriage but grew during marriage due to marital efforts

The enhancement portion is marital even if the original asset isn't.

What NOT to Do

F.S. 61.075(1)(i) requires courts to consider "the intentional dissipation, waste, depletion, or destruction of marital assets after the filing of the petition or within 2 years prior to the filing of the petition."

NEVER:

• Hide assets (courts can award more to your spouse)
• Transfer property to "protect" it (can be reversed)
• Undervalue assets in disclosure (fraud)
• Destroy financial records
• Waste marital funds on affairs, gambling, or frivolous spending

Consequences per F.S. 61.075:

• Unequal distribution favoring your spouse
• Court may award spouse value of dissipated assets
• Sanctions and attorney fee awards
• Potential perjury charges for false disclosure

Strategic Negotiation

Trade Strategically

• Keep assets you care about most
• Offer fair value in other assets
• Consider tax implications of each asset

Think Long-Term

• Retirement accounts have future value
• Real estate has carrying costs
• Business interests need management

Consider Liquidity

• Cash is flexible
• Real estate may be hard to sell
• Some assets have transfer restrictions

Business Protection

If you own a business:

• Get proper valuation
• Distinguish marital from non-marital contributions
• Consider buyout structures
• Protect ongoing operations

Get Expert Help

Asset protection in divorce requires careful strategy. Schedule a $95 Strategy Session to discuss protecting your specific assets.