Credits and Setoffs During Divorce
In certain situations, Florida courts award credits or setoffs in equitable distribution, often where one spouse paid more than their share of a marital debt or maintained marital property alone. For instance, in Fairchild v. Fairchild, 135 So.3d 537 (Fla. 5th DCA 2014), the court acknowledged financial contributions made by both spouses toward a jointly owned home and adjusted distribution accordingly.
In Caine v. Caine, 152 So.3d 860 (Fla. 1st DCA 2014), the issue of fair rental value arose when one party retained exclusive use of the marital home during divorce. The court determined that the non-residing spouse was entitled to an offset for the fair rental value of the home.
To obtain a credit or setoff:
- Keep clear records of mortgage payments, property taxes, or repairs you made after separation.
- Document exclusive possession of the marital home or vehicle by one spouse.
- Demonstrate that the expenditures were reasonable, necessary, and benefited the marital estate.
Typical expenses that may qualify for credits include post-separation mortgage or utility payments, property insurance, necessary repairs or maintenance, and taxes paid on marital property. Setoffs may be applied when one spouse receives a disproportionate benefit, such as using a jointly owned vehicle or residence without compensating the other spouse.
Documentation should include dated receipts, bank statements, check copies, and invoices. It helps to track the purpose of each expense and clearly show that it preserved or maintained marital property rather than served a personal benefit.
These adjustments are discretionary and must be based on findings consistent with Fla. Stat. §61.075.
If you need help drafting, reviewing, or enforcing a marital settlement agreement, contact Rhoden Law Group at 321-549-3162 or use the contact form on this site. We serve clients throughout Brevard County, including Melbourne, Viera, Palm Bay, and the beaches.
For more information about Equitable Distribution visit our YouTube channel to get the video content you need. Otherwise, you can always call the office to speak to one of our experienced attorneys.