Florida Statute 61.075: How Marital Property and Debts Are Divided in a Palm Beach County Divorce

In a Florida divorce, the court divides marital assets and debts under Section 61.075, Florida Statutes, the state’s equitable distribution law. The judge starts from an equal 50/50 split and can depart from it only for reasons the statute lists. Your home, retirement accounts, business, investments, credit cards, and mortgage all go through this process.

Florida is not a community property state. “Equitable” means fair, and fair usually means equal. A judge in Palm Beach County can still award one spouse more than half when the facts justify it.

At the Law Offices of James S. Cunha, P.A. in West Palm Beach, we handle equitable distribution for clients across Palm Beach County, including Wellington, Jupiter, Boca Raton and Palm Beach Gardens. This guide walks through how the statute works, as amended through 2024.

Only marital property is divided. Under § 61.075(1), the court first sets aside each spouse’s nonmarital assets and liabilities, then divides what is left. Section 61.075(6) defines both categories.

Marital (divided)	Nonmarital (kept by the owner)
Assets acquired and debts incurred during the marriage, in either name or jointly	Assets owned and debts owed before the marriage, and anything exchanged for them
Growth in value of a nonmarital asset caused by either spouse’s efforts or by marital money	Inheritances and gifts from third parties, kept separate, and anything exchanged for them
Mortgage principal on a nonmarital home paid down with marital funds, plus a share of passive appreciation	Income from nonmarital assets, unless the spouses treated or relied on it as marital
Gifts between spouses	Assets and debts excluded by a valid prenuptial or postnuptial agreement
Retirement, pension, 401(k), deferred compensation and insurance benefits accrued during the marriage, vested or not	Debt created when one spouse forged the other’s signature (nonmarital only for the forger, unless ratified)
A spouse’s interest in a closely held business, including enterprise goodwill	Real property inherited or gifted by a third party that was never retitled as tenants by the entireties

The presumption that property is marital. Under § 61.075(8), anything acquired during the marriage is presumed marital. The spouse who says otherwise must prove it. Property titled as tenants by the entireties is also presumed marital, and a gift between spouses can be overcome only by clear and convincing evidence.

Commingling. Nonmarital money that is mixed into joint accounts can lose its separate character if it can no longer be traced. Keeping inheritances and premarital funds in separate accounts protects them.

The marital home bought before the marriage. If one spouse owned the home before the wedding and marital income paid down the mortgage, § 61.075(6)(a)1.c. sets a formula for the marital share. That share includes the principal paid with marital funds plus a portion of the home’s passive appreciation. Our Marital Mortgage Paydown Calculator applies this formula.

2024 changes. Effective July 1, 2024, the Legislature added three rules. A gift of real estate between spouses must be in a written deed that meets § 689.01. Joining in a deed to sell homestead property to a third party does not make the property marital. Inherited or gifted real estate stays nonmarital unless it was retitled as tenants by the entirety.

Florida law presumes the marital estate will be split equally. Under § 61.075(1), a judge may make an unequal distribution only after weighing these factors:

1. Each spouse’s contribution to the marriage, including child care, education of the children and homemaking.
2. The economic circumstances of each spouse.
3. The length of the marriage.
4. Any interruption of either spouse’s career or education.
5. One spouse’s contribution to the other’s career or education.
6. The desirability of keeping an asset intact, such as a business, corporation or professional practice.
7. Each spouse’s contribution to the income, appreciation or improvement of marital and nonmarital assets, and to the debts against them.
8. Whether keeping the marital home for a dependent child is equitable, in the child’s best interest and financially feasible.
9. Intentional dissipation, waste, depletion or destruction of marital assets after the petition was filed or within two years before.
10. Any other factor needed to do equity and justice between the parties.

Dissipation. If a spouse spent marital money on an affair, gambling, or hiding assets in the two years before filing, the court can treat that money as if it still existed and charge it to that spouse’s share.

Special equity is gone. Section 61.075(11) abolished “special equity.” Those claims are now brought as requests for an unequal distribution or as claims to the appreciation of nonmarital property.

Alimony comes after property. Under § 61.075(9), the court divides the property first and then decides whether alimony is appropriate. What each spouse receives can affect the alimony analysis.

Cut-off date. Under § 61.075(7), the date that decides which assets and debts are marital is the earliest of three: the date of a valid separation agreement, a date set in that agreement, or the date the divorce petition was filed. Anything acquired after that date is generally nonmarital.

Valuation date. The judge picks the valuation date that is “just and equitable,” and can use different dates for different assets. A brokerage account that swings with the market might be valued close to trial. A business one spouse ran alone after separation might be valued as of filing.

Retirement accounts. The marital portion of a 401(k), IRA, or pension is usually divided with a Qualified Domestic Relations Order (QDRO). This lets you split the account without early-withdrawal penalties.

Closely held businesses. Since July 1, 2024, § 61.075(6)(a)1.f. says a business interest is valued at fair market value. Enterprise goodwill, the value of the business apart from the owner’s personal skill and reputation, is marital and must be valued. A covenant not to compete does not by itself rule out enterprise goodwill. This matters for physician practices, law firms, contractors, and other owner-run businesses common in Palm Beach County and throughout Florida.

How the award is paid. Under § 61.075(10), the court can order a lump sum or installments, with security and interest. A cash equitable distribution award vests when the judgment is entered and survives either spouse’s death or remarriage, under § 61.075(2). An unpaid award earns statutory interest under Chapter 55; see our Florida Judgment Interest Calculator.

Recording. A final judgment that distributes real estate works like a deed once it is recorded in the county where the property sits, under § 61.075(4). For Palm Beach County property, that is the Palm Beach County Clerk’s official records.

1. Financial disclosure. Both spouses exchange financial affidavits, tax returns, account statements and other documents under Florida Family Law Rule of Procedure 12.285.
2. Identify and classify. Each asset and debt is listed and labeled marital or nonmarital.
3. Value. Significant assets are valued, often with appraisers, forensic accountants or business valuation experts.
4. Distribute. The spouses settle through negotiation or mediation, or the judge decides at trial.
5. Written findings. In a contested case, § 61.075(3) requires the final judgment to identify nonmarital assets, value each significant marital asset, assign each asset and debt to a spouse, and explain the reasons for the split.

Interim partial distribution. You may not have to wait for trial to reach marital funds. Under § 61.075(5), either spouse can file a sworn motion asking for part of the marital estate early. The court needs good cause, meaning extraordinary circumstances. Examples are preventing a foreclosure, repossession or tax lien, paying a child’s necessary expenses, or paying reasonable attorney’s fees and costs. Any early payment is credited against that spouse’s share at the end.

Palm Beach County divorces are heard in the Family Division of the Fifteenth Judicial Circuit. Most cases go through the Main Courthouse in downtown West Palm Beach, with branch courthouses serving the north and south ends of the county. Local judges expect complete financial disclosure, and most cases go to mediation before trial.

Property division here often involves more than a house and a 401(k). Common issues include:

• Waterfront and homestead property in Palm Beach, Jupiter and Boca Raton, including homes bought before the marriage
• Equestrian property and businesses in Wellington
• Medical, dental and professional practices, where the 2024 enterprise goodwill rules now apply
• Seasonal residents with property or accounts in other states
• Investment, brokerage and deferred-compensation accounts that need careful tracing

Our office at 250 S. Australian Avenue, Suite 1402, is minutes from the West Palm Beach courthouse. We represent clients throughout Palm Beach County, including Palm Beach, West Palm Beach, Wellington, Jupiter, Palm Beach Gardens, Boca Raton, Delray Beach, Boynton Beach, Royal Palm Beach and Lake Worth Beach. We also handle cases in Martin, St. Lucie, Okeechobee, Broward, and Miami-Dade counties.

How your property is classified and valued can change your result by tens or hundreds of thousands of dollars. If you are facing a divorce in Palm Beach County, contact the Law Offices of James S. Cunha, P.A. at (561) 429-3924 to schedule a consultation. Consultations are by appointment at our West Palm Beach office.

This article provides general information about Florida law and is not legal advice. Reading it does not create an attorney-client relationship. Laws change, and every case depends on its facts.