What money can´t be touched in a divorce?

When people think about divorce, they often imagine emotional arguments and hard conversations about children. But for many spouses in Florida, the most stressful part is money. You may be wondering things like:

●     Whether your savings will be split in half

●     Whether your spouse can reach your business or retirement accounts 

●     Whether an inheritance from your parents is at risk 

These questions are not selfish. They are about protecting your financial stability and making sure you can move forward after the divorce without starting from zero. Understanding which money can be divided and which money may be protected under Florida law can give you a sense of control in a situation that already feels overwhelming.

Florida uses an “equitable distribution” system to divide property and debts in a divorce. That means the court first classifies property as either marital or nonmarital, then divides the marital assets and liabilities in a way that is fair, which is often, but not always, close to a 50/50 split. The judge must also “set apart” each spouse’s nonmarital assets so that they remain with that spouse. In practice, this classification step often matters more than any single negotiation over who keeps a particular account, because once something is labeled marital, it is part of the pot to be divided.

For many spouses, the worry is that everything they have, including money saved before marriage or gifted by family, will automatically be divided. Others assume that putting money in their own name keeps it completely safe, which is not always true either. The reality is more nuanced. Florida law protects certain categories of money from division, but those protections can be lost if funds are mixed together over time or used in certain ways.

If you are unsure how your accounts, business, or inheritance will be treated, speaking with the Law Office of John P. Sherman before filing can help you understand what is at stake and how to protect your financial future under Florida law.

What Money Cannot Be Touched in a Divorce?

When people ask “what money can’t be touched in a divorce?”, what they are really asking is which assets are considered nonmarital, sometimes called separate property, under Florida law. In general, the court does not divide nonmarital property; instead, it must set it apart to the spouse who owns it. Nonmarital money typically includes assets you owned before the marriage, certain gifts and inheritances made to you alone, and property excluded from marital status by a valid prenuptial or postnuptial agreement. To the court, this category exists to recognize that not everything you own was built with marital effort or marital income. However, the details matter, and mistakes like mixing (“commingling”) funds can cause money that started as nonmarital to be treated as marital later.

Under Florida’s equitable distribution statute, some of the most common examples of nonmarital money and how it can lose that status include:

These examples give the court a starting point for deciding which money should stay with one spouse and which belongs in the marital pot. In practice, income or interest from a nonmarital asset usually stays separate only if it is kept in its own account and not used on a regular basis for household expenses. If you routinely move that income into a joint account to pay bills, a judge may later decide that at least part of it has become marital. Careful record-keeping is essential when you want to argue that money is truly separate.

There are also certain categories of money and benefits that are generally not divided like a bank account. For instance, federal law limits how Social Security retirement benefits can be divided in divorce proceedings, and some types of personal injury settlements, such as compensation for your pain and suffering, may be treated as nonmarital even if received during the marriage, depending on how they are structured. That does not mean these assets are completely irrelevant; they can still influence the overall fairness of a settlement or future support discussions. These kinds of assets may not be split directly, but they often come up in negotiations about alimony or how to balance other property. Because the line between “untouchable” and “at risk” can be thin, especially when funds have been moved or mixed over time, it is important to get legal advice before assuming that any particular account is fully protected.

What Money Is Divided During Divorce?

In Florida, the money that is typically divided in a divorce is marital property. Marital assets generally include income and property acquired by either spouse during the marriage, regardless of whose name is on the account. That means wages earned by either spouse, savings built during the marriage, and most retirement contributions made after the wedding are usually part of the marital estate. The court begins with the premise that these assets should be divided equally, but it can adjust that division based on factors such as each spouse’s economic circumstances, contributions to the marriage, and future earning capacity.

Common examples of marital money and how courts typically treat it include:

Even if an account is in just one spouse’s name, it can still be marital if it was funded with marital income. This surprises many people who assumed that keeping an account “in my name only” would keep it fully separate. On the other hand, debts taken on during the marriage, such as credit cards, personal loans, or tax liabilities, are often treated as marital liabilities that must be fairly allocated between both spouses. The court looks at the full financial picture rather than focusing on individual items in isolation.

All of this becomes more complicated when marital and nonmarital funds have been mixed together. For example, if one spouse deposits an inheritance into a joint account and the couple uses that account to pay bills for years, it may be difficult to prove which portion of the money still counts as nonmarital. Florida case law and commentary from the Florida Bar have recognized that commingling can change the character of assets, especially when records are unclear. Careful tracing of deposits and withdrawals can sometimes preserve nonmarital status, but when tracing is impossible, a judge may treat the entire account as marital. This is one reason why documenting and organizing your financial history is so important before negotiating a property settlement.

Business Ownership Before Marriage: How Is It Seen During a Divorce?

Owning a business before marriage often gives people a sense of security. Many assume that because the company existed before the relationship, it is completely off-limits in a divorce. Under Florida law, the business interest you had before the marriage is usually a nonmarital asset, meaning the original ownership itself is not divided. However, that is not the end of the analysis. Any increase in the value of that business during the marriage may have a marital component, especially if marital funds or either spouse’s efforts contributed to its growth.

Florida’s equitable distribution rules allow the marital estate to include the enhancement and appreciation of a nonmarital business when that growth is tied to marital effort or money. In practical terms, a court may look at things like:

●     The value of the business when you got married 

●     The value of the business at the time of divorce 

●     Whether you or your spouse worked in the business during the marriage 

●     Whether marital income was invested into the business or used to pay its debts 

If you spent years during the marriage working in and growing a company you owned before the wedding, the difference between the business’s value at the time of marriage and its value at the time of divorce may have a marital portion. The same is true if marital money was invested into the business, used to pay its loans, or reinvested to support expansion. Distinguishing between “passive” appreciation, such as market forces, and “active” appreciation, such as spousal effort or marital investment, is a key part of this analysis.

In many Florida divorces, rather than ordering spouses to split ownership of a closely held business, courts and attorneys work to value the marital portion and compensate the non-owner spouse through other assets or an equalizing payment. This approach can help keep the business stable while still recognizing the value created during the marriage.

If you own a company that predates your marriage, gathering records that show its value at different points in time, how it was funded, and who contributed to its growth is essential. Having the Law Office of John P. Sherman review your business and financial records can help you understand which parts of the company are likely to be treated as nonmarital, which parts may be marital, and how to negotiate a settlement that protects the enterprise you built while still complying with Florida’s equitable distribution rules.

Understanding Marital Settlement Agreements (MSA)

A Marital Settlement Agreement (MSA) is the written document that outlines how you and your spouse have agreed to resolve the financial and, when applicable, parenting issues in your divorce. It typically addresses things such as:

●     Division of property and debts 

●     Alimony or spousal support 

●     Responsibility for certain expenses, such as insurance 

●     How you will handle tax filings related to the marriage 

For many couples, the MSA is where the classification of money as marital or nonmarital becomes real, because specific numbers and assets are assigned to each spouse. A well-drafted MSA reflects not only the couple’s wishes but also the requirements of Florida law, so that a judge can approve it and incorporate it into the final judgment.

An effective MSA should clearly separate which assets are being treated as nonmarital and which are marital. For example, if one spouse is keeping a premarital inheritance as separate property, the agreement should typically acknowledge that inheritance and confirm it remains with that spouse. At the same time, it should list all marital assets, such as bank accounts, retirement funds accrued during the marriage, equity in the home, and any marital interest in a business, and specify how they are divided. Ambiguity can lead to future disputes, enforcement problems, or even additional litigation if one spouse later claims that an important account or piece of property was left out.

MSAs most often cause problems when they are:

●     Based on incomplete or dishonest financial disclosure 

●     Vague about who keeps or pays for specific assets and debts 

●     Silent about important accounts, retirement funds, or business interests 

●     Written in language that is hard to enforce if someone does not cooperate 

The MSA must also be based on full and honest financial disclosure. If one spouse hides accounts, understates income, or fails to disclose significant debts, the agreement may later be challenged as unfair or obtained through misrepresentation. Judges in Florida will generally review MSAs to make sure they appear fair on their face, particularly when there is a large imbalance in assets or when one spouse is waiving important rights without a clear explanation.

Having a family law attorney draft or review your MSA can help you avoid vague language, protect nonmarital assets, and ensure that the financial terms are enforceable and realistic. For many clients in Miami and the surrounding counties, working with the Law Office of John P. Sherman to structure a clear, court-ready MSA provides peace of mind that the agreement they sign today will stand up tomorrow.

What Do You Divide in a Divorce?

When you step back from categories like “marital” and “nonmarital,” the practical question most people have is: what exactly do we have to divide? In a Florida divorce, the marital estate usually includes a mix of liquid accounts, long-term investments, physical property, and debts. This can involve a wide range of assets and liabilities, such as those in the table below.

Each item in the marital estate must be identified, valued, and either assigned to one spouse or offset through other assets to reach an overall fair distribution.

Some assets require special attention because their value is not as simple as looking at today’s balance. The next table highlights several types of assets that often need extra analysis in a Florida divorce.

On top of that, you and your spouse may have personal items with financial or emotional value, such as jewelry, art, collections, or furnishings. While courts in Florida do not usually spend time dividing every household object, these items can still matter in negotiations and may be referenced in your MSA. For many couples, the goal is not to fight over every item, but to reach an overall division that feels fair. Working with a lawyer who understands both the legal rules and the practical realities of asset division can help you focus on the assets that matter most to your future stability and avoid getting bogged down in details that increase cost without improving the outcome.

Family Law Lawyer

Navigating money during a divorce in Florida is rarely as simple as listing accounts and splitting them down the middle. You are dealing with decades of work, savings, and sometimes inherited or family wealth that you want to protect. On top of that, you may be worried about how your decisions today will affect your ability to retire, support children, or rebuild financially after the case is over.

An experienced Florida family law lawyer can help you understand which parts of your financial life are clearly marital, which may be nonmarital, and where there is room for negotiation. They can also help you avoid common pitfalls such as unintentionally commingling separate funds, undervaluing a business or retirement account, or signing a settlement agreement that does not reflect the full picture of your assets and debts.

At the Law Office of John P. Sherman, the focus is on combining a clear understanding of Florida’s equitable distribution rules with practical, real-world advice. That means identifying all assets and debts, classifying them correctly, and helping you prioritize what matters most, whether that is keeping a business intact, preserving an inheritance, or ensuring long-term security through retirement funds.

It also means crafting or reviewing Marital Settlement Agreements that are detailed enough to prevent surprises, but straightforward enough that you understand exactly what you are agreeing to before you sign. When necessary, the firm can work with financial professionals, such as accountants or valuation experts, to make sure complex assets like businesses or stock-based compensation are handled correctly. For clients in Miami and throughout Florida, this approach can make the difference between feeling blindsided by the financial side of divorce and feeling informed, supported, and prepared.

If you are considering divorce or already in the process and are worried about how your money, business, or inheritance will be treated, you do not have to figure it out alone. A consultation with the Law Office of John P. Sherman can give you a clear picture of which assets are likely to be divided, which may be protected, and what options you have for negotiating a fair result.

You can also discuss specific concerns, such as what to do with joint accounts, how to document separate property, or when to update your estate and beneficiary designations. Taking this step before you sign any agreement or appear in front of a judge can help you avoid costly mistakes that are difficult to undo later. Reaching out for legal guidance now is often the most effective way to safeguard the work you have already done and to move into the next stage of your life on firmer financial ground.