HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 521 Equitable Distribution of Marital Assets and Liabilities
SPONSOR(S): Koster
TIED BILLS: IDEN./SIM. BILLS: SB 534
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Civil Justice Subcommittee 16 Y, 0 N Mathews Jones
2) Judiciary Committee 20 Y, 0 N Mathews Kramer
SUMMARY ANALYSIS
In a proceeding for dissolution of marriage, the court must determine an equitable distribution of assets and
liabilities between the parties. The court first evaluates the assets and liabilities of the parties and determines
which are “marital” and which are “non-marital.” Under s. 61.075(6)(a)1, F.S., marital assets include:
 Assets and liabilities acquired and incurred during the marriage by either spouse or together as a
marital couple;
 The enhancement of value and appreciation of non-marital assets due to the efforts of either spouse or
the contribution of marital funds or other marital assets;
 Interspousal gifts during the marriage;
 All vested and non-vested benefits, rights, and funds accrued during the marriage in retirement,
pension, profit-sharing, and other similar funds;
 All real property held as tenants by the entirety; and
 All personal property titled jointly by the parties as tenants by the entireties, regardless of whether it
was acquired prior to the marriage.
After establishing the list of assets and liabilities, the court must identify each non-marital asset and liability and
set those apart to the respective owner spouse; non-marital assets and liabilities are not included in the
equitable distribution process. The court must begin with the premise that the distribution of marital assets and
liabilities should be equal, unless there is justification for an unequal distribution based on the factors provided
by law.
HB 521 amends s. 61.075, F.S. to clarify various aspects of the equitable distribution process. The bill clarifies
what sort of circumstances justify an interim partial distribution and provides a list of factors for the court to use
in making a determination on whether good cause exists to make an interim partial distribution.
The bill requires any interspousal gift of real property to be made in writing in accordance with s. 689.01, F.S.,
similar to any other transfer of real property made outside of a marriage. The bill amends the definitions of
“marital” and “nonmarital” property to reflect the requirement of a written instrument for an interspousal gift of
real property. Lastly, the bill amends the list of marital assets to recognize the enterprise goodwill in a closely
held business as a marital asset which should be distributed between the parties.
The bill may have an indeterminate fiscal impact on the private sector due to the changes made to the
classification of marital property to be divided subject to a dissolution.
The bill has an effective date of July 1, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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 FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Equitable Distribution
During a dissolution of marriage proceeding, the court must evaluate the assets and liabilities of the
parties and distribute the marital assets between the parties. The court must first identify all assets that
are “non-marital” and set those aside to the respective owner spouse.1 Next, the court must distribute
the marital assets and liabilities between the parties. 2 In distributing the marital assets, the court must
begin with the premise that the distribution should be equal, unless there is a justification for an
unequal distribution based on relevant factors. 3 Generally, equitable distribution is one of the first
components the court must address in a dissolution matter as the distribution of assets may impact
future earning potential and income which, in turn, may impact the amount of alimony, child support, or
attorney fees assessed against each party.
Pursuant to s. 61.075(7), F.S., the cut-off date for determining assets and liabilities to be classified as
marital is either the date the parties entered into a valid separation agreement 4 or the date of the filing
of the petition for dissolution, whichever is earlier. The assets and liabilities incurred by either spouse
following the date of the marriage and not specifically identified as non-marital (such as property
identified in a valid prenuptial agreement as being non-marital) are presumed to be marital assets and
liabilities.5 Further, to do equity between the parties, in lieu of or to supplement, facilitate, or effectuate
the equitable distribution, the court may order a lump sum monetary payment or installment payments
to the other spouse over a fixed period of time.6
Marital Assets
Pursuant to s. 61.075(6)(a)1, F.S. marital assets and liabilities include:
 Assets and liabilities acquired and incurred during the marriage by either spouse or together as
a marital couple;
 The enhancement of value and appreciation of non-marital assets due to the efforts of either
spouse or the contribution of marital funds or other marital assets; 7
 Interspousal gifts during the marriage;8
 All vested and non-vested benefits, rights, and funds accrued during the marriage in retirement,
pension, profit-sharing, and other similar funds;
 All real property held as tenants by the entirety; and
 All personal property titled jointly by the parties as tenants by the entireties, regardless of
whether it was acquired prior to the marriage.
Non-Marital Assets
On the other hand, s. 61.075(6)(b) identifies non-marital assets and liabilities as including:
 Assets acquired and liabilities incurred by either party prior to the marriage;
1 S. 61.075(1), F.S.
2 Id.
3 Id.
4 A valid written or oral agreement to separate is necessary; mere physical separation may not be sufficient to establish a sep aration
date. Broadway v. Broadway, 132 So. 3d 953 (Fla. 1st DCA 2014).
5 S. 61.075(8), F.S.
6 S. 61.075(10)(a), F.S.
7 See Jordan v. Jordan, 127 So. 3d 794 (Fla. 4th DCA 2013) (husband’s pre-marital real property was classified as marital property
subject to equitable distribution based on the wife’s integral role in managing vast improvements to the property during the marriage ).
8 An interspousal gift is a gift between spouses during a marriage and is established by showing donative intent, delivery or p ossession
of the gift, and surrender of control of the gift. Hooker v. Hooker, 220 So. 3d 397 (Fla. 2017).
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  Assets acquired separately by either party by noninterspousal gift, bequest, devise, or descent,
and all assets acquired in exchange for such;
 All income derived from nonmarital assets during the marriage unless the income was treated,
used, or relied upon by the parties as a marital asset;
 Assets and liabilities specifically excluded from marital classification by valid written agreement
of the parties; and
 Any liability incurred by forgery or unauthorized signature of one spouse signing the name of the
other spouse.
Unequal Distribution
After the allocation of non-marital assets to each respective party, the court makes a distribution of the
marital assets and liabilities between the parties. The court must begin with the premise that such
distribution is to be equal. However, upon finding justification for an unequal distribution, the court may
unequally distribute such marital assets and liabilities. The court must consider all relevant factors when
making a determination as to the justification for unequal distribution, including: 9
 The contribution to the marriage by each spouse, including contributions to the care and
education of the children and services as homemaker.
 The economic circumstances of the parties.
 The duration of the marriage.
 Any interruption of personal careers or educational opportunities of either party.
 The contribution of one spouse to the personal career or educational opportunity of the other
spouse.
 The desirability of retaining any asset, including an interest in a business, corporation, or
professional practice, intact and free from any claim or interference by the other party.
 The contribution of each spouse to the acquisition, enhancement, and production of income or
the improvement of, or the incurring of liabilities to, both the marital assets and the non-marital
assets of the parties.
 The desirability of retaining the marital home as a residence for any dependent child of the
marriage, or any other party, when it would be equitable to do so, it is in the best interest of the
child or that party, and it is financially feasible for the parties to maintain the residence until the
child is emancipated or until exclusive possession is otherwise terminated by a court of
competent jurisdiction. In making this determination, the court must first determine if it would be
in the best interest of the dependent child to remain in the marital home; and, if not, whether
other equities would be served by giving any other party exclusive use and possession of the
marital home.
 The intentional dissipation, waste, depletion, or destruction of marital assets after the filing of
the petition or within 2 years prior to the filing of the petition.
 Any other factors necessary to do equity and justice between the parties.
Interim Partial Distribution
The court may make an interim partial distribution of assets during the pendency of a dissolution
proceeding. Upon a party’s sworn motion10 presenting the factual basis for an interim distribution and a
finding by the court that “good cause” exists for such, the court may award an interim distribution. 11
“Good cause” means extraordinary circumstances that require an interim partial distribution;12 however,
the court has broad discretion in what it deems to be an extraordinary circumstance. In awarding
interim distribution, the court must make specific findings that any partial distribution will not cause
inequity or prejudice to either party as to either party’s claims for support or attorney fees. 13
9 S. 61.075(1)(a)-(j), F.S.
10 An interim partial distribution may not be ordered in the absence of a verified motion requesting such a distribution. Kemp v. Kemp,
171 So. 3d 243 (Fla. 1st DCA 2015).
11 S. 61.075(5), F.S.
12 S. 61.075(5)(d), F.S.
13 S. 61.075(5)(b), F.S.
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 Business Interests
A business interest in a closely held business acquired by a spouse during the marriage is a marital
asset that must be valued and distributed in accordance with s. 61.075, F.S.
The value of a business in excess of the value of its property and capital is called “goodwill.” 14 Goodwill
may also be thought of as the tendency of clients or customers to return to the business and
recommend the business to others.15 One kind of goodwill, called “enterprise goodwill,” is the value that
exists separate and apart from the reputation or continued presence of the owner spouse. As such,
enterprise goodwill is a marital asset subject to equitable distribution in a dissolution proceeding. On the
other hand, “personal goodwill” is the goodwill attributable to a person, not to the business, and is
therefore considered a non-marital asset.16 However, when determining the existence of enterprise
goodwill versus personal goodwill, the court in Schmidt v. Schmidt held that when the valuation of a
business requires a covenant not to compete or non-solicitation agreement, it signals the existence of
personal goodwill and no further analysis of the value of enterprise goodwill is required. 17 As such,
under Schmidt, when the valuation of a business requires a non-compete contract or a similar
agreement to conduct the sale, the goodwill is considered personal goodwill and is not included in
determining the value of said business for the purposes of equitable distribution.
Under current law, a court has broad discretion in how to value the goodwill associated with a closely
held business. Further, although it has been well established in case law, chapter 61 does not
expressly provide for the separate consideration of different types of goodwill in the valuation of a
business during equitable distribution.
Transfer of Real Property
As noted above, gifts from one spouse to another made during the marriage are generally considered
marital property that is subject to equitable distribution. Under section 689.01, F.S., all conveyances of
real property must be made in writing and signed in the presence of two witnesses. 18 However, in
Hooker v. Hooker, 220 So. 3d 397 (Fla. 2017), the Florida Supreme Court affirmed a lower court ruling
that had held a property owner spouse had effectively gifted formerly non-marital property to the other
spouse, even though there was no written instrument validly conveying such property under s. 689.01.
The result of the case was that the non-marital property was transformed into marital property, thus
causing the property to be subject to equitable distribution between the spouses in a dissolution of
marriage proceeding.
Effect of Proposed Changes
HB 521 amends s. 61.075, F.S. to clarify various components of the equitable distribution process. The
bill clarifies the meaning of “good cause” for purposes of whether the court may order interim partial
distribution pending a dissolution proceeding. More specifically, the bill establishes a list of factors the
court must consider when determining whether extraordinary circumstances exist for such interim
partial distribution, including the following:
 Whether there is a need for funds in order to avoid or prevent the loss of an asset through
repossession or foreclosure, the loss of a house, the default by either party of a marital debt, or
the levy of a tax lien.
 Whether there is a need for funds to pay an expense for a dependent child if nonpayment of the
expense would be detrimental to the child.
 Whether one of both parties have a need to access funds to pay a reasonable amount of the
attorney fees, court costs, or other suit money for maintaining or defending a dissolution
proceeding.
 Any other circumstances that justify granting an interim partial equitable distribution.
14
Thompson v. Thompson, 576 So. 2d 267 (Fla. 1991) (citing Swann v. Mitchell, 435 So. 2d 797 (Fla. 1983)).
15 See Thompson, 576 So. 2d at 269.
16 See id. at 270.
17 Schmidt v. Schmidt, 120 So. 3d 31, 33 (Fla. 4th DCA 2013).
18 S. 689.01(1), F.S.
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 The bill also amends s. 61.075(6)(a)1, F.S., to provide that the term “marital assets and liabilities”
includes all of the listed items offered under that subparagraph. Further, the bill prohibits an
interspousal gift of real property from being made without written documentation that complies with the
provisions for conveyance of real property under s. 689.01, F.S. As such, under the bill, the mere
inference of a gift of real property, as occurred in Hooker, without written documentation for the
conveyance of such real property, would not meet the threshold required for an interspousal gift and
would be assessed as any other acquisition of real property purchased within a marriage.
The bill further provides that the joinder of a spouse in the execution of a deed with the sole purpose of
the conveyance of homestead real property to any person or entity other than the other spouse or both
spouses jointly does not change the character of the real property being conveyed, or any proceeds
from the sale thereof, to marital property. The bill amends s. 61.075(6)(b), F.S. to add a sixth asset to
the prescribed list of non-marital assets and liabilities offered in statute. Under the bill, real property
acquired separately by either party through noninterspousal gift, bequest, devise, or descent for which
legal title has not been transferred to the parties as tenants in the entireties remains non-marital
property for the purposes of equitable distribution.
The bill adds to the list of marital assets the marital interest in a closely held business. Further, the bill
specifies t