One of the most challenging aspects of a Florida divorce is the need to divide property between spouses. Asset division is challenging in many marital circumstances.
While state law requires the fair or equitable division of both property and debts, it is common for spouses to disagree with one another about what might be fair given their circumstances. The more assets spouses share with each other, the more difficult it can be to settle property division disagreements.
Spouses with more marital resources often face higher levels of conflict. For example, the following unique assets have a strong association with increased property division challenges during a Florida divorce.
Investment holdings
Perhaps someone acquired numerous parcels of unimproved real estate during the marriage. Maybe the spouses purchased digital assets or business stock. The greater the overall value of the marital estate, the more likely spouses are to have diversified their investment portfolios. It can be difficult to value investments purchased for long-term financial gain, as their current value may be a fraction of what people anticipate those assets may be worth in the future.
Deferred employment compensation
Many well-compensated professionals receive complex packages from their employers. They may qualify for performance-based bonuses or retention bonuses if they stay with the company for long enough. They could have the option of receiving restricted stock units if they stay with the company for long enough or achieve certain performance goals. Deferred compensation packages often require multiple years of commitment, and a divorce may occur in the middle of that period. Spouses may find themselves disagreeing about what deferred compensation might be worth and also how much of it is part of the marital estate.
Retirement savings
Few assets make people more emotional during divorce than their retirement accounts. After all, their retirement resources are the primary source of financial stability later in life. Both self-funded retirement savings accounts and pensions provided by employers can trigger conflict during divorce. Some of the value in those resources could be vulnerable due to taxes and penalties if spouses do not plan carefully as they divide their assets.
Those who identify assets that can complicate property division negotiations put themselves in a better position to pursue a peaceful or amicable divorce. Conducting a thorough review of one’s financial circumstances is a good starting point for someone who is hoping to avoid conflict and litigation during the divorce process.
