Hidden Assets in Florida Divorce: What Happens When a Spouse Conceals Property?
Division of marital assets is one of the critical aspects of divorce proceedings in Florida. This process is meant to ensure that each spouse gets their fair share from the marriage. However, there are cases in which people seek an unfair advantage by concealing assets. In such situations, Florida law authorizes the courts to punish such behavior.
Full financial disclosure is required
In Florida, both spouses must disclose all financial information during divorce proceedings. This disclosure would include listing out sources of income, bank accounts, investments, retirement funds, property, businesses, or any other assets of value. This would help the court determine which property is marital and which is non-marital and divide the marital property accordingly.
The act of concealing assets or furnishing false information under oath can create an unfair process and lead to legal consequences.
Common ways assets are hidden
There are a variety of methods used to hide assets. These include, but are not limited to:
- Under-reporting one’s income or paying bonuses after the divorce.
- Temporary transferring of funds to friends and relatives.
- Setting up secret bank accounts or investments.
- Overpaying on taxes, expecting a refund later on.
- Hiding cryptocurrencies or other digital assets.
- Valuing a private business too low or not reporting business income at all.
- Buying expensive items that could be sold later when the divorce is final.
Although such methods may be hard to spot, an experienced attorney knows where to look.
How hidden assets are discovered
The Florida pretrial discovery process offers both sides an equal opportunity to gather financial evidence against each other. Lawyers can seek bank statements, income tax returns, business records, employment records, and any other kind of financial documentation. In some cases, depositions and interrogatories can also help unearth any inconsistencies.
In complex cases, forensic accountants can be hired to trace financial transactions, review business records, and uncover hidden assets.
Consequences of concealing property
In general, attempts to conceal assets do not usually help an offending spouse in the long run, because if it’s proven that a spouse concealed assets, the court can award the other spouse a larger share of the marital estate.
Moreover, other sanctions can be imposed on an offending spouse, including an order to pay legal fees or a finding of contempt of court. Concealed assets can even result in the reopening of a divorce case sometimes.
It is important to be honest at all stages of divorce proceedings.
Protecting your financial interests
If you think your spouse is hiding assets, or you have been charged with failing to disclose your own assets, it is best to get a lawyer during the early stages of your case. A family law attorney in Florida can help with the discovery process by reviewing financial statements to identify hidden property.
There are various factors that characterize each divorce case, but one thing is certain: Florida judges expect all parties to make full financial disclosure.
Talk to a St. Petersburg, FL, Family Law Attorney Today
The Law Office of Kevin F. Coleman represents the interests of St. Petersburg residents during their divorce. Call our St. Petersburg family lawyers today to schedule an appointment, and we can begin reviewing your case right away.
