How Can I Tell If My Spouse Is Hiding Assets in a Florida Divorce?

Divorce can be a challenging process, and one of the most contentious aspects is the division of marital assets. Florida law requires the equitable distribution of marital assets and liabilities, as outlined in Florida Statutes Section 61.075. However, some spouses may attempt to hide assets to gain an unfair advantage. This article explains how to identify signs of hidden assets, the relevant laws, and the steps you can take to protect your rights.

Understanding Marital and Nonmarital Assets in Florida

Before diving into signs of hidden assets, it is essential to understand the distinction between marital and nonmarital assets. Under Florida Statutes Section 61.075(6), marital assets include those acquired during the marriage, as well as the appreciation of nonmarital assets due to marital contributions. Nonmarital assets, on the other hand, are those acquired before the marriage or through inheritance or gifts specifically to one spouse.

Florida law presumes assets acquired during the marriage are marital unless proven otherwise. This distinction is critical because only marital assets are subject to equitable distribution.

Common Signs of Hidden Assets

Hiding assets in a divorce is both unethical and illegal. Still, some individuals attempt to conceal their property or income to minimize their financial obligations. Common signs that your spouse may be hiding assets include:

  1. Unexplained Changes in Financial Behavior: A spouse who suddenly becomes secretive about finances or insists on handling all financial matters alone may be attempting to hide something.
  2. Undisclosed Accounts or Transactions: Frequent unexplained withdrawals or transfers from joint accounts could indicate hidden accounts.
  3. Complex Financial Arrangements: Use of trusts, shell companies, or overseas accounts can be red flags.
  4. Underreporting Income: A spouse who claims their income has dropped but maintains their normal standard of living may be concealing income sources.
  5. Overpayment of Debts: Excessive payments to creditors or fictitious loans may be tactics to “hide” money.  Also, in the case of fictitious loans, it can be retrieved later.

How Florida Law Addresses Hidden Assets

Under Florida Statutes Section 61.075(1), the court must distribute marital assets equitably, beginning with the presumption of equal distribution unless a justification for unequal distribution exists. Florida law requires full financial disclosure from both parties to ensure a fair division of assets.

Florida Family Law Rules of Procedure mandate financial affidavits and mandatory disclosure of certain financial records.  It also allows for the use of request for production, interrogatories, subpoenas for records, and depositions. If a spouse intentionally hides assets, the court can impose penalties, adjust the asset division, or hold the violating spouse in contempt of court.

Tools for Identifying Hidden Assets

If you suspect your spouse is hiding assets, you have several tools at your disposal to uncover them:

  1. Financial Affidavits: Both spouses are required to complete a financial affidavit detailing all assets, liabilities, income, and expenses.
  2. Mandatory Disclosure: Both spouses are also required to exchange an extensive lists of primarily financial records and file Certificate of Compliance with Mandatory Disclosure to show this required mandatory disclosure of documents has been completed. 
  3. Discovery Process: During the discovery phase, you can request documents, issue interrogatories, and depose your spouse to gather information.
  4. Forensic Accountants: Hiring a forensic accountant can be invaluable. These professionals analyze financial records to detect inconsistencies and uncover hidden assets.
  5. Subpoenas and Court Orders: If necessary, your attorney can issue subpoenas to financial institutions or other entities to obtain records.

Legal Consequences of Hiding Assets

Hiding assets in a Florida divorce can result in significant legal consequences. Under Florida Statutes Section 61.075(3), the court requires factual findings supported by substantial evidence in its division of assets. If a spouse is caught hiding assets, the court may:

Additionally, attempting to hide assets can harm the offending spouse’s credibility and affect rulings on other matters such as alimony or child support.

Importance of Legal Representation

Navigating the complexities of asset division in a Florida divorce requires skilled legal representation. An experienced divorce and family law attorney will:

  1. Analyze financial documents for discrepancies.
  2. Employ forensic accountants or investigators if needed.
  3. Use discovery tools to compel the disclosure of assets.
  4. Advocate for a fair and equitable distribution of assets.

Legal counsel ensures your rights are protected and helps level the playing field, especially if your spouse has more knowledge of the family finances.

Steps to Protect Yourself

To protect yourself from a spouse hiding assets, take proactive steps:

  1. Gather Financial Records: Collect bank statements, tax returns, pay stubs, investment accounts statements, and any other relevant financial documents.
  2. Monitor Accounts: Keep an eye on joint accounts for unusual transactions.
  3. Seek Professional Help: Hire an attorney and, if necessary, a forensic accountant.
  4. Be Transparent: Ensure your financial disclosures are accurate to avoid credibility issues.

These steps help safeguard your interests and provide evidence if hidden assets are uncovered.

Sarasota, Bradenton, and Venice, Florida Hidden Assets Divorce Lawyer

Facing a divorce where you suspect your spouse is hiding assets can be overwhelming. Florida law provides tools and protections to ensure a fair and equitable distribution of marital assets. At Law Offices of Matthew Z. Martell, P.A., we have extensive experience in protecting the rights of individuals in divorce proceedings and uncovering hidden assets to secure equitable outcomes.

If you suspect your spouse is hiding assets and need assistance navigating the complexities of a Sarasota, Bradenton, Lakewood Ranch, and Venice, Florida divorce, then contact the Law Offices of Matthew Z. Martell, P.A. by calling (941) 556-7020 or contacting us online for a consultation. Our experienced legal team is here to help you understand your rights and options in these challenging times.

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The Law Office of Matthew Z. Martell located in Lakewood Ranch provides legal services to the following areas: Sarasota, Osprey, Siesta Key, Bird Key, Lido Key, Longboat Key, Bradenton, Lakewood Ranch, Anna Maria Island, Holmes Beach, Palmetto, Ellenton, Parrish, Venice, South Venice, Manasota Key, Englewood, Casey Key, Nokomis and all areas of Sarasota County and Manatee County. Let us help you today.

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