Distribution of Marital Real Estate Under Florida Law: A Discussion on Contribution and Equitable Distribution

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Attorney, Michel L. Watson, Esq.

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In Florida, the distribution of real estate during divorce follows specific principles under Florida Statutes §61.075, which establishes equitable distribution as the standard. Here’s how marital portions of real estate are distributed with particular attention to non-marital contributions:

Basic Principles

Florida begins with the presumption that marital assets should be divided equally between spouses. However, the court may order unequal distribution based on relevant factors including:

  • Each spouse’s contribution to the marriage
  • Economic circumstances of each party
  • Duration of the marriage
  • Contributions to education or career building
  • Any intentional waste or depletion of marital assets

Classification of Real Estate

Real property is classified as either:

  1. Marital property: Generally acquired during the marriage
  2. Non-marital property: Acquired before marriage or through inheritance or gift specifically to one spouse

Gift Presumption

When a spouse re-titles real property into joint names, Florida law establishes an important presumption:

  • A gift is presumed to have been intended
  • The property becomes marital property subject to equitable distribution
  • This is known as “interspousal gift presumption”

This presumption can be rebutted, but the burden of proof falls on the spouse claiming the property remains non-marital. They must present clear and convincing evidence that no gift was intended.

Handling of Non-Marital Contributions

Inheritances

As referenced in Chatten v. Chatten, 334 So.3d 633 (Fla. 4th DCA 2022), Florida courts may consider non-marital inheritance contributions even when property is jointly titled. In this case:

  • The trial court accepted the wife’s testimony that she used non-marital inheritance for a down payment on jointly titled property
  • Despite the joint titling (which would normally create the gift presumption), the court ordered an unequal distribution in favor of the wife
  • This demonstrates courts can recognize special equity based on non-marital contributions

You can explore unequal distribution a bit more in this Florida Bar Article discussing unequal distribution.

Special Equity Claims

Florida courts may recognize “special equity” in property when one spouse can trace non-marital funds used to acquire or enhance marital property. However, the burden of proof is substantial:

  • The spouse must trace non-marital funds with specificity
  • Commingling of funds often defeats such claims
  • Documentation of the source of funds is critical

Commingling Considerations

When non-marital and marital assets are combined:

  • Non-marital funds deposited into joint accounts typically become marital
  • A spouse seeking to preserve non-marital status must maintain separate accounts
  • Records must clearly establish the non-marital source

Enhancement of Value

When non-marital real estate appreciates during marriage:

  • Passive appreciation (market forces) remains non-marital
  • Active appreciation (due to marital efforts/funds) becomes marital property

Florida courts employ complex formulas to determine the marital portion of enhanced value in non-marital real estate. At times, expert testimony may be required. Contact Michel Watson, Esq., to schedule a consultation to discuss your divorce case. Know your rights!