15 Jul Marital Property in a Company Florida Divorce
Summary
When houses or other assets purchased during a marriage are transferred into a company, Florida courts still examine whether the property is marital under Florida Statutes section 61.075. In Miami divorce cases, courts may include the value of corporate-held real estate in equitable distribution if marital funds were used or the transfer was intended to avoid division.
What happens when one spouse transfers assets acquired during the marriage (such as real estate) into a business entity that the other spouse does not own. In many Miami divorce cases, houses, investment properties, and other valuable assets are often placed into limited liability companies or corporations. This strategy is often used for tax planning, liability protection, or real estate management. However, the legal classification of these assets during divorce remains governed by Florida equitable distribution law. The central issue becomes whether the underlying property is marital even if the legal title is held by a company.
Florida courts consistently examine the substance of property ownership rather than the form of title. Under Florida law, assets acquired during the marriage are presumed to be marital assets subject to equitable distribution. The statutory framework is contained in Florida Statutes section 61.075, which requires courts to identify marital assets and liabilities, assign values to those assets, and distribute them equitably between the spouses. The existence of a corporate entity does not automatically shield property from equitable distribution analysis.
This article analyzes how Florida courts treat houses and other assets transferred into companies during marriage, the potential application of fraudulent transfer statutes, and the practical implications for divorcing spouses in Miami and throughout Florida.
Equitable Distribution Under Florida Law
The doctrine of equitable distribution governs the division of property in Florida dissolution of marriage proceedings. Florida Statutes section 61.075 establishes the legal framework used by courts to determine how marital property will be divided. The statute begins with the presumption that marital assets and liabilities should be distributed equally unless justification exists for an unequal distribution.
Marital assets include all assets acquired during the marriage individually by either spouse or jointly by both spouses. The statute specifically provides that assets acquired during the marriage are presumed to be marital unless a spouse proves otherwise by clear and convincing evidence. This presumption plays a significant role in cases where real estate purchased during the marriage is later transferred into a corporate entity.
Florida courts emphasize that the equitable distribution process focuses on the origin of the asset rather than the technical form of title. If marital funds were used to purchase a property, the property will generally be classified as marital even if it is later titled in the name of a company controlled by one spouse.
In Nelson v. Nelson, 206 So. 3d 818 (Fla. 2d DCA 2016), the court reaffirmed the presumption that assets acquired during marriage are marital assets unless proven otherwise by clear and convincing evidence. This principle ensures that spouses cannot easily circumvent equitable distribution by manipulating title ownership.
Real Estate Purchased During Marriage and Placed in a Company
Real estate investments frequently involve corporate ownership structures. Many property investors in Miami hold properties through limited liability companies or corporations for liability protection or tax planning. When divorce occurs, however, the classification of those properties becomes more complex.
The mere fact that a house is titled in the name of a company does not automatically render the property nonmarital. Courts instead examine whether marital funds were used to acquire the property, whether the company was formed during the marriage, and whether the transferring spouse retained control over the company.
If a spouse purchases houses during the marriage using marital income and subsequently transfers those houses to a company that they control, the houses may still be considered marital assets. The corporate structure may affect how the asset is valued or distributed, but it does not eliminate the marital nature of the property.
This issue is particularly common in Miami where real estate investments are often structured through corporate entities. Courts analyze the financial history of the transaction, the source of funds used for purchase, and the level of control exercised by the spouse over the entity that holds title.
Corporate Entities and Equitable Distribution
Florida courts have recognized that a spouse’s ownership interest in a corporation is distinct from the corporation’s underlying assets. In Anson v. Anson, 772 So. 2d 52 (Fla. 5th DCA 2000), the court explained that shareholders do not possess a direct ownership interest in corporate assets. Instead, the shareholder owns stock representing a proportional interest in the corporation itself.
This distinction becomes significant during divorce proceedings. When real estate is owned by a corporation, the marital asset subject to distribution may be the spouse’s ownership interest in the corporation rather than the property itself. However, the value of that corporate interest may be derived largely from the real estate held by the company.
If a spouse owns one hundred percent of the corporate entity that holds marital real estate, the value of that ownership interest may effectively represent the value of the underlying properties. Courts frequently analyze financial records, company documents, and real estate valuations to determine the proper value of the marital asset.
In some cases, courts may also consider whether the corporate structure is being used to obscure or shield marital property from equitable distribution. If the evidence demonstrates that the entity is merely an instrument used to hold marital assets, courts may treat the underlying assets as part of the marital estate.
Fraudulent Transfers of Marital Property
Another legal issue arises when assets are transferred to a company shortly before or during divorce proceedings. If the transfer is made with the intent to hinder, delay, or defraud the other spouse, Florida law may treat the transaction as a fraudulent transfer.
Florida Statutes sections 726.105 and 726.106 govern fraudulent transfers under the Florida Uniform Fraudulent Transfer Act. These statutes provide that a transfer may be considered fraudulent if it was made with the actual intent to hinder, delay, or defraud creditors.
Although the statutes are typically applied in creditor cases, courts may also apply similar principles in divorce proceedings when a spouse transfers marital property to avoid equitable distribution. Indicators of fraudulent intent may include transfers to insiders, concealment of the transfer, retention of control over the property, or transfers made shortly before litigation.
Miami divorce courts frequently analyze the timing and circumstances of asset transfers when determining whether they were legitimate business transactions or attempts to evade equitable distribution obligations.
Intentional Dissipation of Marital Assets
Florida law also recognizes the concept of intentional dissipation or waste of marital assets. Under Florida Statutes section 61.075, courts may consider whether either spouse intentionally dissipated or depleted marital assets within two years prior to filing for dissolution.
The Florida appellate courts have addressed this concept in several cases. In Beers v. Beers, 724 So. 2d 109 (Fla. 5th DCA 1998), the court recognized that intentional depletion of marital assets can justify an unequal distribution. The purpose of this rule is to prevent spouses from reducing the marital estate in anticipation of divorce.
More recent decisions such as Michener v. Michener, 403 So. 3d 1040 (Fla. 5th DCA 2025) and Reed v. Reed, 403 So. 3d 857 (Fla. 2d DCA 2025) reaffirm the authority of trial courts to consider dissipation of marital assets when determining equitable distribution.
If a spouse transfers marital real estate into a company with the intent to conceal or deplete the marital estate, courts may treat the value of that property as belonging to the transferring spouse when distributing assets.
Proceedings Supplementary and Recovery of Transferred Assets
Florida law also provides mechanisms to recover assets that were transferred improperly. Florida Statutes section 56.29 governs proceedings supplementary, which allow courts to reach property that was transferred to avoid legal obligations.
Under this statute, courts may examine transfers of property to determine whether they were made to hinder creditors or other claimants. Although proceedings supplementary typically arise in judgment enforcement cases, similar principles may apply in divorce litigation when assets are transferred to avoid equitable distribution.
In Braswell v. Ryan Investments, Ltd., 989 So. 2d 38 (Fla. 4th DCA 2008), the court discussed the ability of courts to reach assets transferred through corporate structures when necessary to prevent injustice. This principle reinforces the idea that corporate entities cannot be used as shields to defeat legal obligations.
Miami Divorce Courts and Real Estate Entities
Miami divorce cases frequently involve complex real estate portfolios held through limited liability companies or other entities. South Florida’s real estate market encourages investors to structure ownership through companies for tax efficiency and liability protection.
When divorce occurs, however, the family court must determine whether the underlying real estate was acquired using marital funds and whether the corporate structure was established before or during the marriage.
Courts in Miami typically analyze financial records, corporate filings, property purchase documents, and tax returns to determine the true nature of asset ownership. The key question is whether the property represents marital wealth accumulated during the marriage.
If the evidence shows that marital funds were used to acquire real estate that was later transferred into a company controlled by one spouse, courts may include the value of that property in the marital estate.
Practical Litigation Strategies in Florida Divorce
Divorce litigation involving corporate assets often requires detailed financial investigation. Attorneys frequently rely on forensic accountants, financial experts, and real estate valuation professionals to trace the origin of funds used to acquire property.
Tracing is particularly important when real estate has been transferred into multiple entities or when corporate ownership structures are complex. Courts must determine whether the entity itself is a marital asset or whether the underlying property represents marital wealth.
Discovery tools such as subpoenas, depositions, and financial disclosures are commonly used to uncover the financial history of corporate entities involved in divorce cases.
Conclusion
Florida law makes clear that transferring marital property into a company does not automatically remove it from equitable distribution in divorce proceedings. Courts focus on the source of funds used to acquire the property, the timing of the transfer, and the level of control retained by the transferring spouse.
Under Florida Statutes section 61.075, assets acquired during marriage are presumed to be marital property. This presumption applies even when assets are titled in the name of a corporation or limited liability company.
When transfers are made with the intent to hinder equitable distribution, courts may rely on fraudulent transfer statutes, dissipation doctrines, and proceedings supplementary to ensure a fair outcome. Case law including Nelson v. Nelson, Anson v. Anson, Beers v. Beers, Michener v. Michener, Reed v. Reed, and Braswell v. Ryan Investments reinforces the authority of Florida courts to examine the true nature of asset ownership.
For divorcing spouses in Miami, the presence of corporate entities holding real estate does not prevent courts from evaluating whether those assets represent marital property. The equitable distribution process ensures that the marital estate is divided fairly, regardless of how assets are titled.
Speak With a Miami Divorce Lawyer
Divorce cases involving corporate real estate and business entities require careful legal analysis. If your spouse transferred marital assets into a company during the marriage, it is essential to evaluate whether those assets remain subject to equitable distribution.
A Miami divorce attorney experienced in equitable distribution litigation can investigate corporate ownership structures, trace marital funds, and present evidence necessary to protect your financial interests.
TLDR: In Florida divorce cases, houses purchased during marriage remain marital property even if they are transferred into a company owned by one spouse. Under Florida Statutes section 61.075, courts examine the source of funds and the intent behind the transfer. If marital funds were used or the transfer was intended to avoid equitable distribution, courts may treat the property or its value as part of the marital estate.
Can a spouse hide marital property by placing it in a company?
No. Florida courts examine the source of funds used to acquire property. If the property was purchased during marriage using marital funds, it is generally considered marital property regardless of corporate ownership.
Does a corporation prevent equitable distribution in Florida divorce?
No. Courts may treat the spouse’s ownership interest in the corporation as a marital asset and value that interest based on the assets held by the company.
What if property was transferred to a company before divorce?
If the transfer was made to hinder equitable distribution, it may be considered a fraudulent transfer under Florida Statutes sections 726.105 and 726.106.
Can courts reverse transfers of marital property?
Yes. Courts may void fraudulent transfers or assign the value of the transferred asset to the spouse who made the transfer.
How do Miami courts evaluate corporate real estate in divorce?
Miami courts analyze financial records, corporate documents, and the source of funds used to purchase the property to determine whether the asset is marital.
