How Do You Determine the Date of Valuation in a Contested Florida Divorce?

A common issue in Florida contested divorces is how to properly value the couple’s marital assets. Florida is an “equitable division” state. This means that when it is left up to the court to divide a couple’s property, the judge will generally make a 50/50 split unless there are factors that make some other distribution more equitable.

One of the first steps in making an equitable distribution is determining not just which property should be classified as marital assets, but also how to properly value those marital assets. This is often not as simple as you might think. Consider how much time may elapse between when a couple separates to when their divorce case ends up before a judge. Several months–if not years–may pass, during which time the value of certain assets may increase (or decrease) significantly.

Appeals Court: Husband Not Entitled to Benefit from Increase in Value of Wife’s Home

Under current Florida law, the cut-off date for classifying assets as marital or non-marital is the earliest of when the parties sign a separation agreement, the parties sign some other agreement on the subject, or when one party files for divorce. As for the date used in determining the value of the marital assets, that is left to the discretion of the court. The law states that the judge must decide what is “just and equitable under the circumstances,” and the court may even use different valuation dates for different assets.

That said, the trial court’s discretion is not without limits. The judge must base any valuation date on “competent substantial evidence” presented by the parties. The judge must also provide specific written findings supporting their valuation date.

A recent decision from the Florida Fourth District Court of Appeal, Bellegarde v. Bellegarde, provides an example of where the trial court failed in these duties. In this case, the husband and wife initially decided to build a home together. The husband later pulled out of the deal, however, and he started living with another woman. The wife then decided to purchase a house on her own. The husband later briefly resided in the house, albeit separately from the wife. The parties separated for good in 2014, but the wife did not file for divorce until 2021.

In granting the divorce, the trial court valued the house as of the date the wife filed for divorce and awarded the husband 50 percent of the home. On appeal, the wife argued this was not equitable, as the husband contributed nothing to the value of the home. She was the sole owner and paid all of the mortgage expenses and upkeep on the property. The Fourth District agreed with the wife. The appellate court held the trial judge should have valued the home as of the date the couple separated (2014), and not the date divorce proceedings began (2021), especially since during that time the home had approximately doubled in value.

Contact a Tampa Contested Divorce Lawyer Today

What constitutes an appropriate division of marital property in a contested divorce will vary from case to case. That is why it is important to work with an experienced Tampa equitable distribution attorney who can advocate for your interests. Call Florida Law Advisers, P.A., today at (800) 990-7763 to schedule a free, no-obligation consultation.

Sources:

flsenate.gov/Laws/Statutes/2024/61.075

scholar.google.com/scholar_case?case=11312176185659236462