When a married couple divorces in Florida, all marital property – which may include a yacht – is subject to equitable distribution. This means that if the couple doesn’t come to their own agreement regarding which spouse receives what assets, the court will attempt to split everything as fairly as possible.
With a high-value asset like a yacht that the couple bought together, the typical outcome is that one spouse gets the vessel while the other receives property of comparable value. No matter whether the ownership transfer was voluntary or court-ordered, the party who received the boat will have to remove their former spouse’s name from the title.
Once the divorce is finalized, you will need to apply for a transfer of ownership with the U.S. Coast Guard. When you present a copy of the divorce decree along with the application for a certificate of title, you will be exempt from both sales tax and the payment of an initial registration fee.
What if the Boat is Sold?
In some cases, a court may order an expensive asset to be sold and the proceeds divided fairly. If this happens, you need to wait until the sale goes through before using the U.S. Coast Guard Bill of Sale (CG-1340) to transfer the vessel from your ownership into the hands of the buyer. It should be noted that if the boat has an active mortgage or lien, you will need to pay it off before you will be allowed to complete the transfer.
If you need help transferring the ownership of your boat after divorce, the Marine Documentation Division at Howard S. Reeder can provide you with experienced and professional support. We will ensure that all forms are accounted for and correct before submitting them to the Coast Guard, saving you money and providing peace of mind during this change in your life. For more information please contact Howard S. Reeder today.
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