What Happens If a Spouse Hides Income Through Cash Businesses or Gig Work During a Florida Divorce?
It’s extremely important that spouses be honest while going through a divorce, particularly when it comes to disclosure of finances. Both parties are required to give full details of their income, assets, liabilities, and expenses. Some people try to decrease their financial liability by hiding their earnings from their cash-based business or freelancing.
If you suspect that your partner is hiding income during your divorce proceedings, you should know what your options are.
Full financial disclosure is required
Under Florida law, both parties must exchange financial information through the mandatory disclosure process. This makes certain that any decision made in respect to equitable distribution, spousal support, or child support will be based on truthful financial information.
Any party who withholds information about their income during mandatory disclosure will be violating the law and making their divorce proceedings unfair. Income affects all aspects of a divorce.
How is income concealed?
There are various ways of hiding income. Although every situation is different, some examples include:
- Accepting payments in cash and not declaring them
- Underdeclaring one’s income from self-employment
- Making invoices or payments due by customers after the divorce process
- Compensation being made using digital means
- Failure to declare any income earned from ridesharing, delivering, freelancing, or other online ventures
- Income deposited into unlisted bank accounts
The nature of the business for gig workers means that it could be difficult to establish their true income.
How is hidden income uncovered?
If you fear your former spouse is hiding income, there are various ways to establish the truth. Through the discovery process, your lawyer can demand documentation, ask written questions, obtain depositions, and obtain bank account and payroll records from third-party sources where relevant.
In most complicated situations, it is possible to engage a forensic accountant to review the financial documentation to uncover discrepancies, trace deposits, and determine income.
Various pieces of documentation, such as tax returns, bank statements, business records, credit card records, and electronic transaction records, could all form part of the proof.
Likely consequences of hiding income
A spouse who attempts to hide income faces far more consequences than disclosure alone. Courts in Florida take financial misrepresentation very seriously.
Depending on the situation, the court could impose sanctions, award attorney fees, modify property division, or even make support determinations based on the facts. Attempting to hide income can also damage your credibility.
It is usually easier to tell the truth about income from the beginning than to attempt to hide it.
An Experienced Florida Divorce Attorney Can Help
Honest financial disclosure is critical to achieving a fair outcome in a Florida divorce. If you suspect your former spouse is hiding income through cash payments, self-employment, or gig work, it is important to act quickly. Likewise, if questions have been raised about your own financial disclosures, obtaining legal guidance can help you understand your obligations.
The Law Office of Kevin F. Coleman can help keep the other side honest and ensure that they are making full financial disclosure. Call our St. Petersburg family lawyers today to schedule an appointment, and we can begin representing your interests right away.
