Experiencing a divorce can be overwhelming, and figuring out how to divide assets is often one of the most stressful parts of the process. If you or your spouse have retirement accounts, you may wonder how those are handled in a Florida divorce. After all, those accounts represent years of savings and planning for the future. The good news is that Florida law has clear guidelines on how retirement accounts should be divided, but it can still be challenging to navigate. In this blog, we’ll break down what happens to retirement accounts in a Florida divorce and help you understand how the process works.
Retirement Accounts and Equitable Distribution
According to Florida Statutes, any contributions made to a retirement plan during a marriage are classified as marital property. Consequently, these contributions are subject to division between spouses during a divorce.
However, in Florida, the principle of “equitable distribution” is frequently misinterpreted. Although many assume that this approach results in a 50/50 split of marital assets, the law dictates that the division should be fair and just, taking multiple factors into consideration rather than requiring equal distribution. Consequently, when assessing the allocation of a retirement plan or pension, only the amounts earned or contributed during the marriage qualify as marital property. This division does not include any contributions made before the marriage or after separation.
Factors Used To Decide Fair Distribution
When courts are tasked with determining the equitable division of marital property, including retirement benefits and pension plans, they carefully consider several key factors:
- Marriage Length: The duration of the marriage is a critical factor, as longer marriages may indicate a deeper financial and emotional interdependence between spouses. Courts may weigh the contributions made by each spouse over time and the extent to which those contributions have shaped the couple’s financial landscape.
- Marriage Contributions: Contributions can take many forms, including financial investments, homemaking, raising children, and enhancing existing assets. Courts recognize that both spouses contribute to the marriage in various ways—both directly and indirectly—and consider these contributions when determining a fair distribution of property.
- Economic Circumstances: Courts look at both spouses’ financial situations, including their jobs, income levels, and future earning potential. This evaluation helps ensure that the property division reflects both parties’ financial needs and potential, aiming to prevent undue hardship on either spouse after the divorce.
- Debts and Liabilities: Each spouse’s debts, including personal loans, credit card debt, and other financial obligations, have a significant impact on property division. Courts will evaluate these liabilities to ensure that neither spouse is unfairly burdened by debts incurred during the marriage, and the division of assets accounts for these financial responsibilities.
Can Fault Impact Retirement Account Distributions
In Florida, the divorce process is governed by a no-fault law, simplifying the filing grounds. Individuals seeking divorce are not required to demonstrate any specific misconduct or wrongdoing by their spouse.
Instead, they can state “irreconcilable differences,” indicating that the marriage has broken down to the point where reconciliation is no longer possible. However, this approach has significant implications for asset division during the divorce proceedings.
In Florida, the equitable distribution principle ensures that all marital assets and liabilities are divided fairly among both parties, regardless of who initiated the divorce. The court aims for a just allocation, not favoring the spouse who filed for divorce over the other.
Contact an Experienced Florida Divorce Attorney To Learn More
Dividing retirement accounts in a divorce can be complicated, and making the wrong move could affect your financial future. If you are worried about safeguarding your assets or achieving a fair division, do not delay seeking the answers and information you need. Contact St. Johns Law Group today to speak with our legal team.