Pursuant to Florida law, with few exceptions, any assets obtained during a marriage are considered marital property, while property obtained prior to the marriage remains separate. Applying this general rule can become complicated in divorce actions in which the parties mingle separate and marital assets. As discussed in a recent Florida divorce action, when marital assets are used to pay for a non-marital asset, any appreciation in the value of the property is a marital asset as well. If you have questions with regard to your rights in a dissolution proceeding, it would benefit you to consult a Miami divorce lawyer at your earliest convenience.
History of the Case
It is alleged that the parties were married in 2005. In 2015, the wife filed for dissolution of the marriage. The husband responded with a counterpetition. The trial court issued a final judgment of dissolution, which was subsequently appealed. In the initial appeal, the court determined that the husband’s Miami property was a non-marital asset and remanded the case to determine if there was any appreciation in its value during the marriage.
Reportedly, upon remand, the trial court found that the Miami property had depreciated during the marriage and concluded that the wife was not entitled to any share of the appreciation. The wife filed a motion for rehearing, which the court denied pursuant to an order agreed upon by the parties. The wife then appealed.
Equitable Distribution of Appreciation of Property Value
On appeal, the wife contested the trial court’s decision not to award her credit for marital funds used to pay down the mortgage on the Miami property. The court noted that, according to the Florida Supreme Court’s decision in Kaaa v. Kaaa, when marital assets are used to reduce the mortgage on non-marital property, the resulting increase in equity is considered a marital asset subject to equitable distribution.
Although the trial court correctly identified that there was no appreciation in the Miami property’s value, it failed to account for the reduction in mortgage debt achieved through the use of marital funds. Citing similar cases, the court clarified that the use of marital funds to reduce mortgage debt enhances the value of the non-marital property owner’s equity, making it a marital asset.
Consequently, the court reversed the trial court’s decision and remanded the case for recalculating the equitable distribution to include the mortgage pay-down. The wife was entitled to her share of the increased equity value resulting from the use of marital funds to pay down the mortgage on the Miami property.
Confer with a Trusted Miami Attorney
Ending a marriage is not only an emotional decision but also a legal and financial decision. As such, if you want to seek a divorce, it is smart to talk to an attorney about the implications. The trusted Miami divorce lawyers at the Law Offices of Sandy T. Fox, P.A. are well-versed in what it takes to obtain favorable outcomes in dissolution proceedings, and if we represent you, we will advocate zealously on your behalf. You can reach us at 800-596-0579 or by using the online form to arrange a conference.