Learn how Florida divides the marital home, investment properties, and vacation homes in divorce. Covers equitable distribution, property valuation, buyouts, mortgage liability, tax traps, and 2025 market realities.
The house is usually the elephant in the room. In most Florida divorces, real estate isn’t just an asset but it’s one of the biggest assets that ends up in trouble. A primary residence, a rental duplex in St. Petersburg, a vacant lot in Ocala, or a condo on Miami Beach can turn a straightforward divorce into a six- to eighteen-month ordeal.
Understanding how Florida law addresses property division, valuation, and mortgages can save tens of thousands of dollars in legal fees and prevent unexpected surprises. Our expert attorneys break down exactly what happens when real estate is on the table in a 2025 Florida divorce.
Florida Follows Equitable Distribution: Not a Simple 50/50 Split
Florida is one of 41 states that follow equitable distribution. Under Florida Statute §61.075, marital property must be divided in a way the court finds fair, but not necessarily equal.
Key factors judges actually consider when real estate is involved include:
- Length of the marriage
- Each spouse’s direct financial contributions (down payment, mortgage payments, taxes, insurance)
- Indirect contributions (one spouse handling renovations, landscaping, or being the stay-at-home parent)
- The economic circumstances each person will face after a divorce
- Whether minor children need stability in the marital home
- Any intentional waste or hiding of assets
Because the standard is “fair” instead of “equal,” outcomes vary widely. A 20-year marriage with one spouse as the primary breadwinner often ends closer to 50/50. A 4-year marriage where one spouse brought in a paid-off house can look very different.
Marital vs. Non-Marital Real Estate: Where the First Big Fight Usually Starts
Before anything gets divided, the court (or the spouses through mediation) must decide what is marital property and what stays off the table.
Simple rules Florida courts follow:
- Anything bought during the marriage with marital money = marital (even if title is in only one name)
- Property owned before the wedding = non-marital (unless marital funds paid down the mortgage or significantly increased the value)
- Inherited or gifted property = non-marital (as long as it was never retitled jointly and marital funds weren’t used for improvements or mortgage pay-down)
- Commingling turns non-marital into partially marital (example: using joint checking to pay the mortgage on a pre-marriage condo creates a marital interest in the appreciation)
2024-2025 clarification: Adding a spouse to a deed after marriage does not automatically make the entire property marital if it originated as non-marital (see amendments to §61.075).
How Real Estate Gets Valued in a Florida Divorce?
Courts use the fair market value on the date of filing or the date of the final agreement, whichever the parties stipulate.
Typical valuation methods in order of preference:
- Jointly hired a certified appraiser (the most common and least expensive fight)
- Two competing appraisers + judge picks the more credible number
- Realtor comparative market analysis (CMA/BPO), when both sides agree, it’s sufficient
- In rare cases, a business valuation expert for income-producing properties
Hidden costs people forget:
- Outstanding mortgage balance and any HELOCs get subtracted to reach net equity
- Deferred maintenance or needed repairs (roof, seawall, dock) reduce the value
- Post-hurricane damage in 2024-2025 cases has caused huge valuation disputes, and insurance proceeds are usually marital even if the policy is in one name
With Florida’s market still strong but interest rates high, the same house can appraise 8-15% apart, depending on which comparable sales the appraiser emphasizes. That difference can equal $80,000–$200,000 on a typical South Florida home.
Options for Handling the Marital Home and Other Real Estate
After the court determines what portion of the property is marital and establishes its current value, the focus shifts to the practical question: how will the real estate actually be divided? Florida law provides several pathways, and the right choice depends on the couple’s finances, the needs of any children, and current lending conditions.
Option 1: Sell the Property and Divide the Net Proceeds
Selling the home and splitting the equity has become the default resolution in many 2025 cases. A strong Florida real estate market often produces substantial proceeds, but sellers must account for brokerage commissions (typically 5-6%), closing costs, outstanding mortgage balances, and potential capital gains tax liability. Many spouses list the property shortly after filing so the sale can close immediately after entry of the final judgment.
Option 2: One Spouse Buys Out the Other’s Interest
The spouse who wishes to retain the home refinances the existing mortgage solely in his or her name and pays the departing spouse their equitable share of the net value. The buyout can be funded through cash, an offset of other marital assets (such as retirement accounts), or a combination of both. In the current interest-rate environment, however, lenders frequently require 20-25% equity and strict debt-to-income ratios after alimony and child support obligations are calculated. When refinancing is not feasible, the property is usually ordered sold.
Option 3: Continued Co-Ownership Post-Divorce
Although uncommon for primary residences, co-ownership is sometimes retained for income-producing properties or when neither party can qualify for refinancing. The marital settlement agreement must contain detailed provisions governing payment of the mortgage, taxes, insurance, maintenance, and a defined exit strategy. Courts scrutinize these arrangements closely because experience shows they often lead to future enforcement motions.
Option 4: Deferred Sale with Exclusive Possession
When minor children are involved, judges frequently award the primary residential parent temporary exclusive use of the home until a triggering event, typically the high school graduation of the youngest child. At that point, the property is sold, and the proceeds are divided according to the original equitable distribution percentage. The occupying spouse is generally responsible for all carrying costs and, in some cases, payment of occupational rent to compensate the non-resident spouse for deferred access to his or her equity.
Mortgage Issues and Credit Protection Most People Overlook
Whoever isn’t on the mortgage note can walk away clean, but whoever isn’t removed from the existing loan stays on the hook with the lender even after the divorce is final. Missing payments years later can destroy the ex-spouse’s credit and trigger collection calls they thought were ancient history.
The standard fix is a refinance deadline written into the marital settlement agreement (typically 60-180 days after the judgment). If the staying spouse can’t qualify, the agreement should require the house to be listed immediately. Experienced family lawyers also add language giving the non-occupying spouse the right to make payments to protect their credit and then sue for reimbursement.
Tax Traps and Hidden Costs in 2025
Transferring real estate between spouses incident to divorce is still tax-free under federal law if done within one year of the final judgment (or up to six years if required by the decree). Florida’s documentary stamp tax ($0.70 per $100) is usually waived or split by agreement on the primary residence.
Capital gains become the bigger headache. The $250,000 exclusion ($500,000 if married filing jointly) only applies if the house was the primary residence for two of the last five years. Many couples who moved to a new home and turned the old one into a rental are shocked to owe 15-20% federal tax, plus Florida has no state income tax, but the federal bite still hurts.
Frequently Asked Questions About Florida Divorce and Real Estate
Who gets to stay in the house while the divorce is pending?
The spouse who files first can ask for exclusive use and possession through a motion for temporary relief. Judges almost always grant it if children are involved or if domestic violence is alleged. Otherwise, both parties technically have the right to live there until a court order says differently (which leads to a lot of uncomfortable nights on the couch).
What if the house is titled only in one spouse’s name?
The title doesn’t control division in Florida. If it’s marital property, the court can still award the other spouse half the equity or force a sale.
Can the court make me sell the house if I want to keep it?
Yes, if the numbers prove the staying spouse can’t afford it or if equity needs to be freed up to balance the settlement.
Do I have to pay my spouse for half the equity if the house was mine before marriage?
Only for the portion that became marital (mortgage pay-down with joint funds + passive appreciation during the marriage). Florida uses the “source of funds” formula in these cases.
What happens to the mortgage if we both stay on the loan after the divorce?
The lender doesn’t care about your divorce decree. Both remain 100% liable until one refinances or the house sells.
How soon can we list the house for sale?
Usually the day the petition is filed, as long as both agree or the court grants permission. Many couples sign a listing agreement contingent on the judge signing the final judgment.
If real estate is complicating your Florida divorce, the sooner you sit down with an attorney who actually handles these cases every week, the less money and stress you’ll lose. Reach out today for a strategy session. You’ve worked too hard building equity to leave it to chance.
Need a Florida Attorney for Real Estate in Your Florida Divorce?
Real estate is often the most valuable and complicated asset in a divorce. An experienced attorney can make the difference between a fair resolution and years of financial exposure.
Our Florida family law team focuses on complex property division, accurate valuations, mortgage liability protection, and equitable distribution strategies that hold up under today’s market conditions.
Contact us today to schedule your confidential call. We’ll review your situation and provide clear guidance on protecting your interests.
Take the first step toward certainty, reach out now.
