Cash Flow Planning for Life - Helping you reach your personal & professional financial goals.

Cash Flow Planning for Life

Helping you reach your personal & professional financial goals.

Real Estate & Divorce – Your Rights in the State of Florida

This is the tenth installment of “Divorce. What You Need to Think About from a Financial Perspective” which can be downloaded from our FREE eBook library.

The Marital Home

In Florida, “the marital home” is defined as the piece of real property where you and your spouse have spent the majority of your marital lives together. This property is considered a joint asset, and is subject to division according to the Florida statutes. Of course, the court makes the ultimate decision as to who gets the property. A number of factors are taken into consideration, such as:

  • Who has contributed more to the property’s mortgage
  • Whose name is on the mortgage
  • Whether children are present in the home

The court may award the home to a spouse with custody of the children, believing it to be in the best interest of the child. However, you may buy your former spouse out of their interest in the home by taking on a larger mortgage in your name only.

Other Real Estate

If you have real estate that was acquired before the marriage, it is generally eliminated from divorce proceedings (with the exclusion of the marital home). Other property is either sold with the proceeds divided among both spouses, or one spouse retains the property and the other receives a pay-out. This pay-out is based on the financial contributions made to the maintenance of the property or the paying of the mortgage.

Passive Activity Losses

Passive activity losses, such as rental Divorceproperties, pose a complex question of whether a transfer would be a gift and subject to capitalization. If you have any rental properties or other passive investments you should consult a professional with knowledge of this matter before finalizing the martial settlement agreement. Suspended S-Corporation losses follow the stock as stated in the martial settlement agreement.

If you are currently going through a divorce or will be getting divorced in the near future, consult with a Fort Myers CPA to help make financial planning less stressful. At Makara & Associates we provide quality service to each client based on our knowledge & specialization in each service rendered. Do you have additional questions? We have answers. Contact us online or call (239) 768-5008 today!

– Mark

This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.
LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.

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