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How Florida Courts Handle Hidden Assets in Divorce Cases
Introduction
Dividing assets in a divorce can be a complicated process, especially when one spouse attempts to hide assets to avoid sharing them. In Florida, both spouses are legally required to provide full financial disclosure during divorce proceedings. If one spouse conceals money, property, or other assets, the court may impose serious penalties.
This guide explains how hidden assets impact divorce cases in Florida, how they are uncovered, and what legal options are available for spouses who suspect financial dishonesty.
What Are Hidden Assets in a Divorce?
Hidden assets refer to any property, income, or financial accounts that one spouse intentionally conceals to prevent them from being included in the divorce settlement. Common examples of hidden assets include:
- Undisclosed bank accounts or investments
- Transferring assets to family members or friends
- Undervaluing business assets or reporting lower income
- Purchasing expensive items and undervaluing them
- Failing to disclose bonuses, commissions, or stock options
Hiding assets in a divorce is illegal and can lead to significant legal consequences, including financial penalties and changes in the asset division ruling.
How to Identify Hidden Assets in a Florida Divorce
Uncovering hidden assets requires careful examination of financial records and transactions. Some strategies to detect hidden property or income include:
Reviewing Financial Statements
- Examine tax returns, bank account records, and investment statements for discrepancies.
- Look for sudden withdrawals, unexplained transfers, or cash transactions that do not align with normal spending patterns.
Analyzing Lifestyle vs. Reported Income
- If one spouse claims to have little income but continues to make large purchases, it could indicate undisclosed financial resources.
- Comparing reported income with known expenses can highlight inconsistencies.
Investigating Business Assets
- A spouse who owns a business may manipulate income by delaying invoices or overreporting expenses.
- Reviewing business financials, payroll records, and contracts can uncover hidden profits.
Checking Property and Asset Transfers
- A spouse may transfer money to family members or create joint accounts with others to temporarily hide assets.
- Reviewing real estate transactions and vehicle registrations may reveal undisclosed assets.
If a spouse suspects hidden assets, a forensic accountant or financial investigator may be necessary to uncover the truth.
Legal Consequences for Hiding Assets in a Florida Divorce
Florida courts take financial dishonesty seriously. If a spouse is caught concealing assets, the court may:
- Award a larger share of the marital assets to the innocent spouse.
- Hold the dishonest spouse in contempt of court, resulting in fines or legal penalties.
- Order the spouse to pay the other party’s attorney fees and forensic accounting costs.
- Reopen the divorce case if hidden assets are discovered after the final settlement.
Full financial disclosure is required under Florida’s divorce laws, and failing to provide accurate information can damage a spouse’s credibility in court.
Steps to Take If You Suspect Your Spouse Is Hiding Assets
If you believe your spouse is concealing assets in a divorce, consider taking the following steps:
- Gather financial documents – Collect bank statements, tax returns, loan applications, and business records.
- Monitor spending and transfers – Pay attention to unusual withdrawals, large purchases, or hidden financial accounts.
- Hire a forensic accountant – A financial expert can analyze transactions and uncover discrepancies.
- Request formal financial disclosures – Courts require both spouses to submit financial affidavits detailing their income, expenses, and assets.
- Work with a family law attorney – An experienced attorney can subpoena records, question financial inconsistencies, and present evidence of hidden assets in court.
Uncovering hidden assets early in the divorce process can prevent financial loss and ensure a fair division of property.
How a Family Law Attorney Can Help
A family law attorney can assist with:
- Investigating and identifying hidden assets.
- Filing motions to require full financial disclosure.
- Working with forensic accountants to analyze financial records.
- Representing clients in court if financial fraud is discovered.
- Seeking penalties against a spouse who has attempted to conceal marital assets.
At Bonderud Law, we help clients ensure a fair and transparent divorce process by uncovering hidden assets and holding dishonest spouses accountable. If you suspect your spouse is concealing financial information, contact us today for a free consultation.
Conclusion
Hiding assets in a Florida divorce is illegal and can have serious consequences for the dishonest spouse. Courts require full financial disclosure to ensure that marital property is divided fairly. If a spouse suspects hidden assets, taking legal action early can help uncover the truth and protect their financial interests.
If you are concerned about financial dishonesty in your divorce, consulting with an experienced attorney can help you navigate the legal process and secure a fair settlement.