Dividing marital property in a divorce is governed by the equitable distribution statute. Sometimes the division is not so equitable. One former husband complained to the appellate court the values of the marital property awarded to his former wife increased so much after the trial, he needed more money to do equity.
What goes up
In 2018, the parties’ marriage was dissolved, and their assets were equitably divided and distributed. The former wife was awarded the marital home, valued at around $138,000. The final judgment required the former husband to sign over a deed of his interest in the home to his former wife, but also obligated the former wife to pay cash to the former husband to equalize the distribution.
Neither party appealed the revised equitable distribution scheme in the amended final judgment, which continued to award the former wife the marital home and continued to value it at $138,413.
In 2022, the former husband filed a motion claiming that value of the home had increased so much, that he was entitled to have the value from any sale equally divided. He did not move to set aside either the final judgment or the amended final judgment as inequitable.
Instead, he argued that the valuation of the home in both judgments was put in place to show if the house had been sold at the current market, what it would be worth. Following a hearing, the family judge disagreed, and the former husband appealed.
Florida Equitable Distribution
I have written about equitable distribution in Florida before. In a proceeding for dissolution of marriage, in addition to all other remedies available to a court to do equity between the parties, a court must set apart to each spouse that spouse’s non-marital assets and liabilities.
When distributing the marital assets between spouses, a family court must begin with the premise that the distribution should be equal, unless there is a justification for an unequal distribution based on all relevant factors.
However, when dividing up a marital estate, a court can’t always divide it equally to the penny. To ensure a marital estate is equalized, a court may order one spouse to pay the other spouse a lump sum payment. This amount is referred to as an “equalizing payment”.
An equalizing payment is proper only when the distribution schedule justifies it and the payment is in the ability of the paying spouse to make the payment without substantially endangering his or her economic status.
Must Come Down
On appeal, the court found that when an equalizing payment is ordered by a court to equitably distribute marital assets, they payment becomes vested when the judgment is entered, and is treated as a debt owed.
Here, the former husband had 30 days after entry of the final judgment to challenge the equitable distribution but he didn’t. The equalizing payment vested and could not be challenged because res judicata applies to prevent either party from relitigating the issue.
The court also held that even if the former husband had timely brought a claim under rule 12.540 it would fail. Former husband had to allege “new circumstances.” The fact that the marital home may have appreciated in value is not a new circumstance.
The opinion is here.