One of the main processes during a divorce is the division of assets and income. A court may have to go through volumes of financial records and other relevant information to decide on what the equitable division of the marital assets would be.
It can be a complicated issue, further exacerbated by one or both of the spouses attempting to hide their assets from the court in order to be favored in the court’s decision. If you’re going through a divorce in Florida, you might benefit from learning more about assets and income:
What Are Assets?
Assets are certain pieces of property which have a measurable present value. More often than not, they are material possessions such as real estate properties, vehicles, valuable collectibles, etc. However, trademarks, copyrights, patents and other things without a tangible value can also be considered assets.
What Is Income?
On the other hand, income streams differ slightly from assets as they classify as anything that can yield regular income. Some examples include income from renting a property, income from a retirement account, as well as income from home business.
The significance of income streams in divorce proceedings is tied to the court’s decision on whether one of the spouses should have alimony awarded. Additionally, if the ex-spouses have children together, income streams are essential for the court to be able to determine the appropriate amount of child support.
How Are Assets and Income Divided?
In Florida, courts strive to divide all assets equitably. It does not imply a 50-50 division, but rather that each of the spouses will be treated fairly. For example, if one of the spouses wishes to retain an asset of higher value as it holds a specific significance to them, the other person will likely be rewarded with additional assets to keep the division balanced.
When it comes to income streams, the division is a little more complicated, but still done honoring the principles of equity. An ongoing source of income is usually divided based on a percentage that one spouse should pay to another, and the court sets that amount.
What If an Item Is Both an Asset and Income?
In some rare cases, an item is considered both an asset and income, and it does happen that the line gets blurry between the two. For example, in the case of a property that the ex-spouses renovated and turned into a rental property which yielded regular income, it can be unclear whether the property should be considered an asset or an income stream.
Sometimes courts can classify an item as both, although this practice was not used until recently. The main concern of allowing this practice is that it may enable the spouses benefiting from asset division to have double benefits from a single item. However, the courts are permitted to consider income streams coming from assets that were previously equitably divided, to determine whether to award alimony and how much it should be.
Divorce can get quite complicated, and it’s crucial to know your rights and consult with a family law professional to make the process as smooth as possible.
If you would like to discuss the specifics of your divorce case or need more information about assets and income in Florida divorce, call Debora A. Diaz at 727-846-1802.
If you have questions about divorce, child support, shared parental responsibility, time-sharing/parenting time, and parenting plans, contact Debora A. Diaz Esquire at 727-846-1802 to schedule a consultation or use the Scheduling Link: https://deboradiazlawscheduling.as.me/.
At this time, all consultations are by telephone or video conferencing in order to protect our staff and clients.
Attorney Diaz practices exclusively in divorce and family law in Florida. Debora A. Diaz is also a Florida Supreme Court Certified Family Mediator.
Written by: Debora A. Diaz Esquire