HB 565

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

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