Florida Equitable Distribution Explained — How Assets Are Actually Divided in a Florida Divorce

By Nadia Pazos, Family Law Attorney, Pazos Law Group · May 2026  ·  ← All blog posts

Most people assume Florida splits everything 50/50. The reality is more nuanced. Florida is an “equitable distribution” state — meaning the court starts with a 50/50 presumption but adjusts based on specific statutory factors. Here is how it actually works.

What Is Equitable Distribution?

Florida is one of 41 states that use equitable distribution rather than community property. Community property states (like California and Texas) generally split marital assets strictly 50/50. Florida starts there as a presumption but allows the court flexibility to do what is fair given the specific facts of each marriage.

The governing statute is Fla. Stat. § 61.075. It requires the court to identify each spouse marital and non-marital assets, value the marital assets, and divide them in a way that is fair under the listed factors.

Marital vs. Non-Marital Assets

The first — and often most contested — step is classifying each asset as marital or non-marital.

Marital Assets Include:

• Income earned by either spouse during the marriage
• Real estate purchased during the marriage (regardless of whose name is on the title)
• Contributions to retirement accounts (401(k), pensions, IRAs) made during the marriage
• The increase in value of a business operated by either spouse during the marriage
• Any property acquired with marital funds, no matter the title
• The appreciation in value of a non-marital asset caused by marital effort or marital funds (called “active appreciation”)

Non-Marital Assets Include:

• Property owned by either spouse before the marriage
• Gifts received by one spouse from a third party (not the other spouse) during the marriage
• Inheritances received by one spouse
• Assets excluded by a valid prenuptial or postnuptial agreement (see Florida prenuptial and postnuptial agreements)
• Personal injury settlements (for the portion compensating pain and suffering, not lost income)

Critical point: Mixing marital and non-marital assets — called “commingling” — can turn a non-marital asset into a marital one. If you deposited an inheritance into a joint account, paid down a pre-marital mortgage with marital income, or used joint funds to renovate a pre-marital home, expect the court to scrutinize the asset closely.

The 50/50 Presumption (and What Adjusts It)

Once marital assets are identified and valued, the court starts with the presumption that they should be split equally between the spouses. To depart from a 50/50 split, the court must articulate specific reasons based on the statutory factors. The court cannot simply decide one spouse “deserves more.”

Under Fla. Stat. § 61.075(1), the factors a Florida court weighs include:

1. The contribution of each spouse to the marriage (financial and as a homemaker or caregiver)
2. The economic circumstances of each spouse
3. The duration of the marriage
4. Any interruption of personal careers or educational opportunities for either spouse
5. The contribution of one spouse to the personal career or educational opportunity of the other
6. The desirability of retaining the marital home as a residence for any dependent child
7. The intentional dissipation, waste, depletion, or destruction of marital assets after the filing of the petition or within two years prior to filing
8. The desirability of retaining an asset (such as a business) intact and free from interference
9. Any other factor necessary to do equity and justice between the parties

How Specific Asset Types Are Actually Divided

The Marital Home

Three common outcomes:

1. Sell and split the proceeds. Cleanest. The mortgage is paid off, the net is divided per the equitable distribution schedule.
2. One spouse buys the other out. Often the spouse with primary time-sharing keeps the home. The buying spouse refinances to remove the other from the mortgage and pays the equity buyout.
3. Deferred sale. One spouse stays in the home with the children for a defined period (often until the youngest child turns 18 or graduates), then the home is sold and proceeds divided.

Retirement Accounts and Pensions

The marital portion of a 401(k), pension, or IRA — meaning contributions and growth during the marriage — is subject to equitable distribution. Pre-marital contributions and the growth attributable to them are non-marital.

Dividing a 401(k) or pension typically requires a Qualified Domestic Relations Order (QDRO) — a specialized order that allows division without triggering early-withdrawal penalties or immediate taxation. IRAs can usually be divided by direct transfer without a QDRO.

Closely-Held Businesses

When one spouse owns or co-owns a business, the marital portion of the business is subject to equitable distribution. Valuation is typically performed by a forensic accountant or business valuation expert, using one or more methods (income approach, market approach, asset approach) depending on the type of business.

In a high-net-worth Florida divorce, business valuation is often the largest single issue and the most expensive part of the case. The non-owner spouse typically receives an equalizing payment for their share of the business value, while the owner spouse keeps the business intact.

Executive Compensation: Stock Options and RSUs

Unvested stock options and restricted stock units (RSUs) earned during the marriage are subject to equitable distribution to the extent they reward services performed during the marriage. The portion that rewards future services (post-divorce work) is generally non-marital. Florida courts use various coverture formulas to apportion these awards.

Debts

Marital debts — mortgages, joint credit cards, joint car loans — are also subject to equitable distribution. The court divides debts and assets together to arrive at a net equitable distribution.

When the Court Departs from 50/50: Dissipation

The most common reason a Florida court departs from a 50/50 split is the intentional dissipation, waste, depletion, or destruction of marital assets — usually within the two years before the petition for divorce is filed.

Common examples of dissipation:

• Spending marital funds on an affair
• Gambling marital funds away
• Hiding assets — transferring funds to family members, opening undisclosed accounts, or undervaluing a business (see our guide on hidden assets in Florida divorce)
• Making large gifts to friends or family without the other spouse knowledge or consent
• Selling marital property below market value

When dissipation is proven, the court typically credits the wasted amount back to the innocent spouse side of the distribution.

How to Prepare for Equitable Distribution

1. Gather financial records. Tax returns (3 years), bank and brokerage statements (12 months), retirement account statements, mortgage and loan documents, business financial statements, and credit reports.
2. Identify and document non-marital assets. Inheritances, gifts, and pre-marital property need a paper trail showing the source and any subsequent treatment.
3. Avoid asset moves. Do not transfer funds, sell major assets, or make large gifts after deciding to divorce. Almost every Florida court issues automatic temporary financial restraining orders at the start of a case, and dissipation claims can swing the distribution against you.

Related Reading

• Hidden Assets in a Florida Divorce
• Dividing a Business in a Florida Divorce
• What Happens to the Marital Home in a Florida Divorce
• High-Net-Worth Divorce in Florida — Complete Guide
• Florida Family Law Glossary — Equitable Distribution

The information on this page is for general informational purposes only and does not constitute legal advice. Florida equitable distribution is fact-specific and depends on the unique circumstances of each marriage. Reading this article does not create an attorney-client relationship with Pazos Law Group.