Father Contests Equitable Distribution in Florida Family Law Case
Before you can equitably distribute the marital estate, you must determine what assets and debts belong to it. In other words, the court must decide what constitutes marital property and what constitutes the property of the individual spouses. Generally speaking, all property acquired during the marriage is considered a part of the marital estate. Property acquired before or after the marriage, is considered the property of the individual spouses. In the case of Smoot v. Smoot, No. 1D2023-0698 (Fla. 1st DCA June 12, 2024), the husband contested the inclusion of a certificate of deposit (CD) that was opened before the marriage had begun. The court had ruled that the CD was marital property, even though the husband had opened it up before the marriage.
Background of the case
In this case, the parties were divorced and a final judgment of dissolution was entered. As part of equitable distribution, the court treated several assets as marital property. This included a certificate of deposit opened by the husband before the marriage. The husband argued that this CD was premarital, non-marital property because it was never commingled with marital assets and remained solely in his name. The wife, on the other hand, countered that it should be included in equitable distribution, claiming that the CD was part of the marital estate. In this case, the trial court ruled in favor of the wife and divided the CD between the two parties.
The husband appealed. The question then became: Was the CD part of the marital estate or was it the sole property of the husband?
The appeal
Under Florida Statutes § 61.075, marital assets usually include property acquired during the marriage. Property acquired before the marriage remains non-marital unless:
- It is commingled with marital assets, or
- It is transmuted into marital property by agreement or usage.
According to the record, the CD was purchased by the husband before the parties were married. In addition, it was kept separate from marital funds with no evidence of commingling.
The First District Court of Appeal held that the trial court’s inclusion of this CD in the marital estate was a legal error because it directly conflicted with statutory definitions of marital versus non-marital assets.
Ultimately, the court found in favor of the husband, holding that the CD was his own personal property and not property of the marriage.
Key takeaways
Premarital property remains non-marital unless there is clear proof of commingling, transmutation, or agreement. Trial courts are required to make specific factual findings that support the inclusion of assets in the marital estate.
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Source:
1dca.flcourts.gov/content/download/2435770/opinion/Opinion_2023-0698.pdf
