HB 565

1
A bill to be entitled
2An act relating to family law; amending s. 61.075,
3F.S.; redefining the term "marital assets and
4liabilities" for purposes of equitable distribution in
5dissolution of marriage actions; providing that the
6term includes the paydown of principal of notes and
7mortgages secured by nonmarital real property and
8certain passive appreciation in such property under
9certain circumstances; providing formulas and
10guidelines for determining the amount of such passive
11appreciation; requiring security and interest relating
12to the installment payment of such assets; providing
13exceptions; permitting the court to provide written
14findings regarding any installment payments; providing
15an effective date.
16
17Be It Enacted by the Legislature of the State of Florida:
18
19     Section 1.  Paragraph (a) of subsection (6) and subsection
20(10) of section 61.075, Florida Statutes, are amended to read:
21     61.075  Equitable distribution of marital assets and
22liabilities.-
23     (6)  As used in this section:
24     (a)1.  "Marital assets and liabilities" include:
25     a.  Assets acquired and liabilities incurred during the
26marriage, individually by either spouse or jointly by them.
27     b.  The enhancement in value and appreciation of nonmarital
28assets resulting either from the efforts of either party during
29the marriage or from the contribution to or expenditure thereon
30of marital funds or other forms of marital assets, or both.
31     c.  The paydown of principal of a note and mortgage secured
32by nonmarital real property and a portion of any passive
33appreciation in the property, if the note and mortgage secured
34by the property are paid down from marital funds during the
35marriage. The portion of passive appreciation in the property
36characterized as marital and subject to equitable distribution
37shall be determined by multiplying a coverture fraction by the
38passive appreciation in the property during the marriage.
39     (I)  The passive appreciation shall be determined by
40subtracting the gross value of the property on the date of the
41marriage or the date of acquisition of the property, whichever
42is later, from the value of the property on the valuation date
43in the dissolution action, less any active appreciation of the
44property during the marriage, as defined in sub-subparagraph b.,
45and less any additional encumbrances secured by the property
46during the marriage in excess of the first note and mortgage on
47which principal is paid from marital funds.
48     (II)  The coverture fraction shall consist of a numerator,
49defined as the total paydown of principal from marital funds of
50all notes and mortgages secured by the property during the
51marriage, and a denominator, defined as the value of the subject
52real property on the date of the marriage, the date of
53acquisition of the property, or the date the property was
54encumbered by the first note and mortgage on which principal was
55paid from marital funds, whichever is later.
56     (III)  The passive appreciation shall be multiplied by the
57coverture fraction to determine the marital portion of the
58passive appreciation in the property.
59     (IV)  The total marital portion of the property shall
60consist of the marital portion of the passive appreciation, as
61defined in subparagraph 3., the mortgage principal paid during
62the marriage from marital funds, and any active appreciation of
63the property, as defined in sub-subparagraph b., not to exceed
64the total net equity in the property at the date of valuation.
65     (V)  The court shall apply this formula unless a party
66shows circumstances sufficient to establish that application of
67the formula would be inequitable under the facts presented.
68     d.c.  Interspousal gifts during the marriage.
69     e.d.  All vested and nonvested benefits, rights, and funds
70accrued during the marriage in retirement, pension, profit-
71sharing, annuity, deferred compensation, and insurance plans and
72programs.
73     2.  All real property held by the parties as tenants by the
74entireties, whether acquired prior to or during the marriage,
75shall be presumed to be a marital asset. If, in any case, a
76party makes a claim to the contrary, the burden of proof shall
77be on the party asserting the claim that the subject property,
78or some portion thereof, is nonmarital.
79     3.  All personal property titled jointly by the parties as
80tenants by the entireties, whether acquired prior to or during
81the marriage, shall be presumed to be a marital asset. In the
82event a party makes a claim to the contrary, the burden of proof
83shall be on the party asserting the claim that the subject
84property, or some portion thereof, is nonmarital.
85     4.  The burden of proof to overcome the gift presumption
86shall be by clear and convincing evidence.
87     (10)(a)  To do equity between the parties, the court may,
88in lieu of or to supplement, facilitate, or effectuate the
89equitable division of marital assets and liabilities, order a
90monetary payment in a lump sum or in installments paid over a
91fixed period of time.
92     (b)  If installment payments are ordered, the court may
93require security and a reasonable rate of interest, or otherwise
94recognize the time value of money in determining the amount of
95the installments. If security or interest is required, the court
96shall make written findings relating to any deferred payments,
97the amount of any security required, and the interest. This
98subsection does not preclude the application of chapter 55 to
99any subsequent default.
100     Section 2.  This act shall take effect July 1, 2012.


CODING: Words stricken are deletions; words underlined are additions.