How Florida’s HB 521 is Changing Asset Division in Divorce: What You Need to Know
Divorce is never easy, especially when it comes to dividing assets. Florida’s new HB 521 law has introduced changes that affect how marital property is divided in divorce cases. Whether you’re considering divorce or already in the process, it’s important to understand how HB 521 could impact the division of your assets.
What is HB 521?
HB 521, which became law in 2024, makes significant changes to the way assets are treated during divorce in Florida. This legislation focuses on simplifying how marital and non-marital assets are classified and distributed.
Under HB 521, non-marital assets—those acquired before the marriage or via inheritance or gifts—remain with the original owner unless there’s a clear commingling of funds with marital assets. The new law also provides more clarity on what counts as marital property and how it should be divided.
Key Changes Affecting Asset Division
Here are a few critical ways HB 521 affects the division of assets during a divorce:
- Clearer Distinction Between Marital and Non-Marital Property
Previously, it was sometimes unclear whether certain assets were marital or non-marital, particularly when spouses combined their finances. HB 521 offers a more precise definition, making it easier to classify property. This change helps to minimize disputes over whether assets should be split.
- Retirement Accounts and Pensions
HB 521 clarifies how retirement accounts and pensions, which often represent a substantial part of marital assets, are to be divided. Under the new law, only the portions of these accounts that accumulated during the marriage are considered marital property. The division will still follow equitable distribution principles but now operates with more specific guidelines.
- Income-Generating Assets
Another important shift involves income-producing assets like rental properties or businesses owned by one spouse. If these assets grew in value during the marriage due to the active efforts of either spouse, HB 521 makes it clearer that the increase in value may be subject to division, even if the asset itself was initially non-marital.
- Debts and Liabilities
The new legislation also touches on the issue of debts incurred during the marriage. Under HB 521, any debts acquired by either spouse for personal expenses that do not benefit the marriage can remain their responsibility. However, debts taken out for joint ventures, like mortgages, will still be considered marital liabilities.
How HB 521 Impacts Your Divorce
HB 521’s changes could significantly impact your financial situation post-divorce. While the law aims to make asset division more transparent and equitable, these changes can be complex to navigate. For instance, proving that an asset should remain non-marital may require substantial documentation and legal guidance. The new law also introduces potential complications for those with intertwined personal and business assets or complex financial portfolios.
To protect your rights and ensure that your assets are divided fairly, it’s critical to have legal representation familiar with the nuances of HB 521.
Contact the FCLC Group for Legal Guidance
Going through a divorce is challenging enough without the added stress of navigating new legal standards. At FCLC Group, we specialize in family and marital law and stay up to date with the latest legislation, including HB 521. If you are concerned about how this new law may impact your assets, we are here to help. Contact us today for a consultation, and let our experienced team guide you through the process to achieve a fair outcome.
