What Are You Entitled to in a Divorce in Florida? Including Digital Assets Like Ethereum and Bitcoin

Divorce is rarely straightforward, especially when it comes to understanding what you are entitled to in terms of assets and debts. Florida follows an equitable distribution model, meaning that marital assets and debts are divided fairly, though not necessarily equally. This includes traditional assets like property and retirement accounts, as well as digital assets like cryptocurrencies such as Ethereum and Bitcoin. To ensure you get a fair share, consulting a divorce attorney Orlando FL can provide valuable guidance.

Understanding Marital vs. Non-Marital Assets

In Florida, assets and debts are categorized as either marital or non-marital. Marital assets and debts are those acquired during the marriage, while non-marital assets and debts generally belong to one spouse individually and were acquired before the marriage or by inheritance or gift. However, in some cases, non-marital assets can become marital if they are “commingled,” or mixed, with marital property.

For example, if one spouse owned a home before marriage but used marital funds to renovate it, the home may be considered a marital asset. The same rule applies to investments and savings accounts that one spouse owned before marriage but contributed to jointly. Determining what qualifies as marital or non-marital is crucial in ensuring a fair distribution. An experienced Orlando divorce attorney can help clarify these distinctions and represent your best interests.

Digital Assets and Cryptocurrency: Unique Challenges in Divorce

Digital assets, including cryptocurrencies like Ethereum and Bitcoin, present new challenges in divorce proceedings. These assets are subject to equitable distribution, but they can be harder to trace, value, and divide. Cryptocurrencies fluctuate in value frequently, making it difficult to establish a fair division. Moreover, one spouse might try to hide digital assets, complicating the process even further.

Because digital assets are stored in digital wallets, it’s essential to obtain a complete record of your spouse’s financial holdings. A skilled attorney can help uncover hidden assets and work with financial experts to accurately value and divide digital assets, ensuring you receive an equitable share.

Division of Marital Property

Florida law divides marital property based on equitable distribution, aiming to split assets fairly rather than equally. This includes assets such as the family home, vehicles, bank accounts, and investments acquired during the marriage. Generally, the court will consider factors like the duration of the marriage, each spouse’s contribution to the marriage, and each party’s financial circumstances when determining an equitable distribution.

For instance, if one spouse has significantly higher earning potential or contributed more financially, they might receive a larger share of the assets. On the other hand, if one spouse left a career to care for children, the court may award them a larger portion of the marital home or other assets. It’s worth noting that equitable distribution also includes the division of debt, so each spouse may be responsible for a share of joint credit card debt, mortgage debt, or other obligations accumulated during the marriage.

Retirement Accounts and Pensions

Retirement accounts, pensions, and similar financial assets acquired during the marriage are generally considered marital property in Florida and are subject to division. These include 401(k) plans, IRAs, and pensions that both spouses contributed to while married. Retirement assets can be complex to divide because they often require a Qualified Domestic Relations Order (QDRO), a legal document that allows for the division of retirement funds without incurring tax penalties.

A QDRO outlines the specific amount each spouse will receive, and this order is submitted to the retirement plan administrator to facilitate the transfer. Given the complexity of retirement accounts, working with a qualified attorney is crucial to ensure compliance with tax and legal requirements and to protect your financial future.

Alimony in Florida: Are You Entitled to Support?

In Florida, alimony may be awarded to a spouse who requires financial support after a divorce. Alimony is not automatically granted; rather, it depends on several factors, including the length of the marriage, the financial need of one spouse, and the other spouse’s ability to pay. Florida recognizes different types of alimony, including temporary, bridge-the-gap, rehabilitative, durational, and permanent alimony. Each type serves different purposes and is awarded based on specific circumstances.

For example, if you were married for a short period, you might qualify for bridge-the-gap alimony, which is meant to cover immediate needs after the divorce. On the other hand, in a long-term marriage, permanent alimony might be awarded to support a spouse who cannot become financially independent. The court considers factors such as age, health, income, and standard of living when determining alimony. Consulting with a divorce attorney can help you understand your eligibility for alimony and the type most suited to your situation.

Child Custody and Support: Ensuring the Best Interests of the Child

When children are involved in a divorce, child custody and support arrangements become central issues. Florida courts prioritize the best interests of the child when making custody and support decisions, aiming to create a stable environment for the child. Child custody in Florida is split into two categories: legal custody, which involves decision-making responsibilities, and physical custody, which pertains to where the child will live.

Joint custody arrangements are common in Florida, with both parents sharing decision-making responsibilities and spending time with the child. However, if one parent is deemed unfit or unable to provide a safe environment, the court may award sole custody to the other parent. Factors like the child’s age, the parents’ ability to cooperate, and each parent’s history of involvement are considered when determining custody arrangements.

Child support is also calculated based on each parent’s income, the amount of time each parent spends with the child, and the child’s specific needs. Florida uses a set formula to calculate child support, but adjustments can be made if unique circumstances arise. By working with a skilled attorney, you can advocate for a custody and support arrangement that aligns with your child’s best interests.

Splitting Debts in a Florida Divorce

Just as assets are divided in a Florida divorce, so too are marital debts. Marital debts are those incurred during the marriage, regardless of whose name is on the account. Common examples include mortgages, car loans, and credit card debt. Similar to asset division, debts are split equitably, not necessarily equally.

For instance, if one spouse has a higher income, they might take on a larger portion of the debt. The court also considers each spouse’s contributions to the household and financial circumstances when allocating debt. This approach aims to prevent financial hardship for either party, helping each person begin their post-divorce life on stable footing.

Final Steps to Protect Your Financial Future

A divorce can significantly impact your financial landscape, especially if you have complex assets like digital currencies or retirement accounts. To protect your interests, consult with a knowledgeable attorney who understands the nuances of Florida divorce law. They can help you navigate each step of the process, from classifying marital assets to advocating for an equitable division of property and debts.

An attorney can also assist in securing necessary documentation, working with financial professionals to uncover hidden assets, and ensuring your digital assets, like Ethereum and Bitcoin, are correctly valued. By having a comprehensive understanding of what you’re entitled to in a Florida divorce, you can make informed decisions that support your long-term financial goals.