Florida Statutes 736.1508 – Dissolution of marriage
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(1) Upon the dissolution of the marriage of the settlor spouses, the community property trust shall terminate and the trustee shall distribute one-half of the trust assets to each spouse in accordance with subsection (3). For purposes of this act, s. 61.075 does not apply to the disposition of the assets and liabilities held in a community property trust.
(2) The initiation of an action to dissolve the settlor spouses’ marriage does not automatically terminate the community property trust unless otherwise agreed to by the settlor spouses in writing or otherwise ordered by the court having jurisdiction over the dissolution proceedings between the settlor spouses. However, if an action to dissolve the settlor spouses’ marriage remains pending for 180 days, the trust automatically terminates and the trustee must distribute one-half of the trust assets to each spouse in accordance with subsection (3), unless any of the following apply:
(a) A settlor spouse objects to the termination within 180 days following the filing of the dissolution action. At which time, either party may request that the court having jurisdiction over the dissolution proceedings between the settlor spouses determine if good cause exists to terminate the community property trust during the pendency of the dissolution of marriage action.
Terms Used In Florida Statutes 736.1508
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Community property: means the property and the appreciation of and income from the property owned by a qualified trustee of a community property trust during the marriage of the settlor spouses. See Florida Statutes 736.1502
- Community property trust: means an express trust that complies with…. See Florida Statutes 736.1502
- Dissolution: means either:(a) Termination of a marriage by a decree of dissolution, divorce, annulment, or declaration of invalidity; or(b) Entry of a decree of legal separation maintenance by a court of competent jurisdiction in another state that recognizes legal separation or maintenance under its laws. See Florida Statutes 736.1502
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Settlor spouses: means a married couple who establishes a community property trust pursuant to this part. See Florida Statutes 736.1502
- Trustee: A person or institution holding and administering property in trust.
- writing: includes handwriting, printing, typewriting, and all other methods and means of forming letters and characters upon paper, stone, wood, or other materials. See Florida Statutes 1.01
(b) The court having jurisdiction over the dissolution proceedings between the settlor spouses enters an order directing otherwise.(c) The settlor spouses otherwise agree, in writing, while the dissolution of marriage action is pending.(d) The community property trust agreement provides otherwise.
(3) Unless provided otherwise in the community property trust agreement, the trustee has the power to distribute assets of the trust in divided or undivided interests and to adjust resulting differences in valuation. A distribution in kind may be made on the basis of a non-pro rata division of the aggregate value of the trust assets, on the basis of a pro rata division of each individual asset, or by using both methods. A trustee may not distribute real property or business interests in a manner that would leave the settlor spouses as co-owners of such assets post dissolution of the settlor spouses’ marriage or termination of the community property trust, unless otherwise agreed to by the settlor spouses in a separate written agreement executed during the dissolution of marriage action. Notwithstanding any other provision of this section, the community property trust agreement cannot be terminated, and the assets cannot be distributed, in a manner that could cause the trust assets to not be treated as community property.
(4) The court having jurisdiction over the dissolution proceedings between the settlor spouses has personal and subject matter jurisdiction over the settlor spouses and the trustee of the community property trust for the purpose of effectuating the distribution of the community property trust assets consistent with the terms of the community property trust agreement, in a manner ensuring that the trust assets retain their community property character.