Details of the Mills v. Mills Case

During the 37 years that he was married to his wife Brenda, Barry Mills entered into a number of investments, many of which turned out to be profitable. In 2007, Barry and several other investors attempted to form a startup bank. In order to cover his share of the startup capital, Barry took out a home equity loan in the amount of $100,000 dollars; as per the terms of the loan agreement, he pledged the couple’s house as collateral to secure the loan. Certain that Brenda would refuse to sign for the home equity loan, and knowing that he would not have sufficient funds to participate in the startup bank project without the loan, Barry signed Brenda’s name on the loan documents without her knowledge. When the startup bank applied for a state charter, the state refused to issue one, meaning that Barry lost his investment, which totaled more than $245,000. When the lenders required the Mills family to repay the loan, they repaid it using money from Barry’s retirement funds.

When the couple divorced, the trial court classified the loss resulting from the startup bank project as a non-marital liability. The court’s reasoning was that, except in cases of misconduct, all assets and liabilities taken on during the marriage count as marital property. Brenda appealed the decision, arguing that a forged signature qualifies as misconduct.  Barry did not deny forging Brenda’s signature on the loan documents. The appeals court sided with Brenda and re-classified the loss as a non-marital liability.

What Is Misconduct in the Context of Equitable Distribution?

One of the only reasons that a Florida court will classify a debt incurred during the marriage as a non-marital liability is if one spouse can prove that the debt is the result of misconduct on the part of the other spouse. This often takes the form of one spouse sabotaging the couple’s finances in order to reduce the amount of spousal support that he or she will have to pay when the couple divorces. Another type of misconduct commonly cited in divorce cases is when one spouse spends or borrows money to support an extramarital affair partner. The appeals court in the Mills v. Mills case ruled that forging a spouse’s signature in order to obtain a loan without the spouse’s knowledge qualifies as misconduct.

Contact Alan R. Burton About Division of Property

Finding out that your spouse has been deceiving you about finances can be one of the worst parts of divorce. Contact Alan R. Burton in Boca Raton, Florida with questions about the classification of marital and non-marital property.

If a spouse loses a loved one, they may have received an inheritance, which may include liquid assets, property, investments, titles, and more. While inheritances can have substantial financial value, they also may have significant emotional value, as well, especially in the case of family homes, businesses, heirlooms, or other meaningful property. If you receive an inheritance and are considering divorce, it is only natural that you may be concerned about the fate of the inherited money or property.

Is an Inheritance Marital or Non-Marital Property?

The answer to the above question varies from case to case. Generally speaking, an inheritance is assumed to be non-marital property, which means it is not subject to division in divorce and you will get to keep the entirety of the inherited property. However, there are two main exceptions in which an inheritance may be deemed marital property.

First, if the inheritance was written in both of your names, it will be deemed marital property even if it came from a deceased loved one on your side of the family. This is occasionally the case in longer marriages where the spouses had close relationships with their in-laws, who included the spouses’ names together in a last will and testament.

Second, your inheritance may be converted to marital property if it was “commingled” with other marital funds. To commingle is to blend non-marital and marital funds in a single account or investment, so that they can no longer be distinguished. Additionally, if you put your inherited assets toward a marital purpose, such as buying a house or paying off joint debts, the court may consider that property to be commingled and divisible upon divorce.

If your inheritance has been commingled but you still believe it should be considered non-marital property, you will have the burden of proving why the court should not divide those assets or property. In such cases, you always want to have a divorce attorney who has extensive experience handling cases involving inheritances and other complex property division issues.

Contact a Boca Raton Divorce Attorney for a Free Consultation Today

Boca Raton divorce lawyer Alan R. Burton understands how important your assets—and particularly inheritances—are to you and your future. Mr. Burton knows how to fight to make sure you retain both the marital and non-marital assets you deserve in your Florida divorce case. If you are facing divorce, call our office today at (954) 229-1660 to schedule your free case evaluation as soon as possible.