Divorce can be an emotional journey, but discovering that your spouse may be hiding assets can add another layer of betrayal and anxiety. Florida courts do require full financial disclosure during divorce (Florida Family Law Rules of Procedure 12.285). While hiding assets violates this obligation, unfortunately, this underhanded tactic is often attempted to be used to limit the equitable division of property, spousal support, or child support. For women navigating divorce, uncovering hidden assets is critical to ensuring financial security and fairness.
Understanding Marital vs. Separate Property
A key step in achieving a fair division of assets is understanding the distinction between marital property and separate property:
- Marital Property: Includes assets acquired during the marriage, such as joint bank accounts, retirement funds, real estate, and other investments, regardless of whose name is on the title.
- Separate Property: Covers things such as assets owned before the marriage, inheritances, personal gifts, or personal injury awards, provided they remain separate and aren’t commingled with marital assets.
While these are just a few examples of marital vs separate property, it is imperative to seek an attorney to ensure that you are fully aware of the marital assets. This can be a complex area in a divorce, as there is often a “marital component” of a premarital asset that must be determined to ensure fair and equitable distribution. Something that must be considered is any increase in value of separate property due to marital efforts (e.g., spouse’s work improving a pre-marital business or contributions to a premarital home).
In Florida, an equitable distribution model is used, meaning marital property is divided fairly but not necessarily equally. However, determining what qualifies as marital or separate property can become complicated, particularly if assets are commingled or if one spouse actively attempts to conceal them.
Signs Your Spouse May Be Hiding Assets
Suspecting your spouse is hiding assets can feel daunting, but recognizing red flags is the first step toward addressing the issue:
- Secretive Financial Behavior: Your spouse suddenly becomes defensive or evasive about financial matters or insists on handling all financial documents alone.
- Unusual Account Activity: Look for frequent large withdrawals, unexplained transfers, or the creation of new, undisclosed accounts.
- Missing Financial Documents: Tax returns, bank statements, or other financial records may vanish or become inaccessible.
Common Methods Spouses Use to Hide Assets
Understanding how assets might be hidden equips you to take action. Common methods include concealing cash, transferring funds, opening custodial accounts, and purchasing undervalued assets. With the help of an experienced divorce attorney and a forensic accountant, hidden assets can be discovered to ensure a just settlement.
Assets and liabilities will be disclosed throughout the divorce process, and your attorney will be able to closely analyze all documentation. Your attorney can also file for more in-depth discovery or file a subpoena to financial institutions directly.
The Role of Forensic Accountants
Forensic accountants specialize in detecting concealed assets, making them an invaluable resource in complex divorces. They can examine financial records, investigate tax returns, trace transactions, and provide accurate valuations.
Hidden Assets and Their Impact on Support
An incomplete financial picture can lead to unfair child support or spousal support arrangements. Courts rely on accurate income and asset disclosures to determine appropriate payments. If your spouse downplays their financial resources, you could receive less than you’re entitled to.
Should hidden assets be discovered after support agreements and divorce are finalized, courts could potentially adjust the terms. This reinforces the importance of transparency and the serious consequences of dishonest financial practices. It is important to consult an experienced attorney should you expect that assets were not disclosed during your divorce, as there are certain time restrictions and other issues they will discuss with you.
Preventing Asset Hiding
While it’s impossible to control someone else’s actions, you can take steps to protect yourself. Regularly review financial documents, including tax returns and bank statements. Take an active role in family financial decisions to detect unusual activity. Keep copies of all essential financial records to prevent sudden “disappearances.”
How Florida Women’s Law Group Can Help
At Florida Women’s Law Group, we are dedicated to safeguarding your financial future during divorce. Beyond legal representation, we provide the support and understanding you need during this life transition.
If you suspect your spouse is hiding assets, don’t wait. Call us at 904-900-2419 or schedule a call here! Our team of experienced attorneys is dedicated to advocating for women's rights and best interests. Take the first step towards a brighter future for you and your family today.
