Florida operates under an “equitable distribution” model when it comes to dividing marital property in a divorce. This means that all marital assets (property acquired during the marriage) will be divided equitably, or fairly, but not necessarily equally. This division is based on various factors, such as each spouse’s economic circumstances, the duration of the marriage, and the contributions each spouse made to the marriage.
However, the equitable distribution model poses potential risks. For example, you might end up losing a significant portion of your assets if they are considered marital property. You may also worry that the court’s interpretation of what is “fair” may not align with yours.
Even so, you cannot hide assets. You do not have the right to falsify financial disclosures during the divorce or take steps to keep assets that are subject to division from your spouse.
In any divorce proceeding, each party is required by law to disclose all their assets and liabilities. This full disclosure is crucial as it forms the basis for the equitable distribution of marital assets. Failing to disclose or intentionally hiding assets is considered fraudulent behavior and is punishable by law.
In Florida, the penalties for hiding assets in a divorce can be severe. One such penalty is jail time. In rare cases, the court may find you in contempt or charge you with perjury, which have their own consequences. Hiding assets could lead to a loss of credibility in court, which could negatively impact other aspects of the divorce proceedings, such as child custody decisions.
More commonly, the party who hid assets will be hit with the attorney’s fees, costs, and expenses that their spouse incurred due to the investigation of the hidden assets. For example, suppose an individual hides a bank account with substantial funds. If discovered, not only could the person lose more than just half of the asset, but they may also face additional fines and penalties.
It is important to note that despite attempts to hide assets, they are still discoverable in some cases. Forensic accounting techniques can unearth hidden income or assets. The investigative powers of divorce attorneys can also expose concealed assets through processes like discovery and depositions.
While many people worry that equitable distribution laws pose a risk to their assets, you can take steps to safeguard your hard-earned assets. Here are some ways to protect your assets in a divorce:
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At Dale L. Bernstein, Chartered Law Office, we offer comprehensive divorce services. If you are worried about how to protect your assets, our attorney can help you strategize ways to negotiate with your spouse or present your case in court. Our firm also offers forensic accounting services for those who suspect the other party is hiding assets.
Complete our online contact form or call us at (727) 312-1112 to discuss your case with our experienced attorney.