When filing for divorce, both parties must disclose their financial information. What if one spouse doesn’t disclose the whole truth about finances?
A spouse can have hidden bank accounts, transfer money to another account, and underreport business income. All of these factors can make it hard to determine the couple’s actual financial situation and can also affect the division of marital assets.
The court must identify and divide marital property during a Florida divorce case. The general principle is that marital property and debts should be divided equally unless there is a valid reason for an unequal distribution, as outlined in Florida Statute § 61.075. The statute also gives the court the power to consider the intentional dissipation or waste of marital property either after the filing of the divorce or within the two years preceding it.
What are Hidden Assets in Divorce?
Generally, a hidden asset is a financial interest or property that one spouse fails to disclose or attempts to conceal during divorce proceedings.
Hidden assets are not limited to money in a secret bank account. They can include:
- Offshore investments
- Business interests
- Real estate
- Retirement accounts
- Cryptocurrency
- Valuable personal property
- Unreported income
Sometimes the warning signs are apparent. In other cases, they are seen as unusual changes in spending or income.
Florida Statutes § 61.075 addresses the identification and distribution of marital assets and liabilities in a divorce. Assets acquired during the marriage are generally treated as marital assets unless the spouse claiming that an asset is nonmarital establishes otherwise under Florida law.
What if your spouse suddenly claims their income dropped?
A sudden drop in reported income can be significant when it does not appear to be consistent with the spouse’s business activity, lifestyle, or financial records.
For example, a business owner may suddenly report much less income shortly before or during a divorce. A lawyer may need to review business records, tax returns, bank statements, invoices, and other financial information to determine whether the reported income matches the available records.
What if there are bank accounts you did not know about?
The spouse can have an account – a checking account, savings account, investment account, or online financial account – that the other spouse did not previously know about.
Bank statements and other financial documentation can be useful for tracking transfers, deposits, withdrawals, and account ownership. If an account is found, the next question is whether the funds are marital or nonmarital and how they should be treated under Florida law.
What if money were transferred to another account?
Money may be moved between accounts shortly before or during a divorce. A transfer does not automatically mean that a spouse acted improperly—the purpose and timing of the transfer matter. Financial records can help show where money came from, where it went, and whether the funds remained available.
Florida Statutes § 61.075 specifically allows the court to consider intentional dissipation, waste, depletion, or destruction of marital assets in certain circumstances.
What if business revenue suddenly decreases?
Business income can be more difficult to evaluate than a regular paycheck. A spouse who owns a business may have control over when customers are billed, when payments are collected, or when certain business expenses are recorded. A sudden change in reported revenue may therefore require a closer look at the business records.
An attorney may work with a financial professional to examine the company’s financial information and determine whether the reported numbers appear complete.
What if financial statements are missing?
Missing financial statements can make it harder to identify the full financial picture. Florida Family Law Rule of Procedure 12.285 establishes mandatory disclosure requirements in many family law proceedings. The required financial information can include financial affidavits and various financial records.
Florida Courts have forms 12.932 and 12.902 for certification of compliance with required disclosures and financial affidavits, respectively.
A lawyer will be able to determine what further discovery or court proceedings may be necessary if this information is not provided.
What if new debts suddenly appear?
A spouse may report new credit card balances, loans, or other debts during a high-assets divorce petition.
Under Florida Statutes 61.075, a contested final judgment is required to establish marital liabilities and determine who will be responsible for them.
An attorney can review the records to determine when the debt was incurred, how the funds were applied, and whether the debt is considered a marital or nonmarital debt.
What if your spouse controls all financial information?
This can make the divorce procedure more complicated. During the course of a marriage, one spouse might have managed the family’s bank accounts, investments, taxes, business, or retirement accounts.
This does not mean the spouse without financial control has no way to obtain information. The other spouse may not know about other accounts or where important financial records are kept.
How Can a Lawyer Investigate Hidden Assets?
A lawyer can review the available financial information and identify any missing or conflicting details. An attorney can request further documents through discovery, depending on the situation. This may include an examination of documents, interrogatories, depositions, subpoenas, or other methods permitted under the Florida Family Law Rules of Procedure.
The financial records could include tax returns, bank statements, investment statements, business bank statements, loan documents, retirement statements, and other financial records.
Which discovery tools to use will depend on the case and the information sought.
How Can Forensic Accounting Help Find Hidden Assets?
Financial records may be complex, or income and assets not easily traced, in which case forensic accounting can prove helpful. A forensic accountant might review financial records to identify unusual transactions, track funds, analyze business income, compare reported income with financial activity, or assist in determining the value of specific assets.
A forensic accountant is not acting on behalf of the court. Rather, financial analysis can provide the attorney with information to present the case’s financial issues.
What Does Florida Law Say About Dividing Hidden Marital Assets?
Equitable distribution of marital assets and liabilities is governed under Florida Statutes § 61.075. The statute requires the court to identify and distribute marital property while keeping nonmarital property separate. It also provides that the court begins with the premise of equal distribution but may make an unequal distribution when justified by relevant factors.
The statute also requires specific findings in contested cases regarding the identification and valuation of significant marital assets and the allocation of marital liabilities.
If hidden income or assets also affect an alimony issue, that financial information may be relevant to the court’s determination. Florida law requires the court to consider financial resources and all sources of income when determining an alimony award.
How Coleman Law Group Can Help With Hidden Assets Divorce in Florida?
When divorces involve assets and liabilities, transparency in financial disclosures is important. Our high asset divorce lawyer can guide you through the legal options if you suspect your spouse of concealing assets or underreporting income.
Coleman Law Group can review your circumstances, help identify potential financial issues, and explain the discovery and equitable distribution process under Florida law. If you are dealing with hidden assets divorce issues in Florida, contact Coleman Law Group at +1 (7272140400) or send an email to aheartforpeople@clgfl.com to schedule a consultation to discuss your case.
