If your spouse tries to hide assets during your divorce, your attorney may be able to locate and identify them and argue for a larger share of marital property in the distribution. Meanwhile, your spouse could potentially be required to pay many of your legal fees.
The outcome will depend on the evidence uncovered. If you suspect your spouse is withholding information or steps have been taken to conceal property that should be divided in the divorce, it is a good idea to explain your concerns to your attorney as soon as possible so that investigations can be made.
Here, we review how assets may be hidden, what can be done to identify them, and the consequences your spouse could face for their unscrupulous actions.
Is It Illegal to Hide Assets During a Florida Divorce?
Everyone makes mistakes, but intentionally concealing marital assets during divorce proceedings violates the financial disclosure rules that apply to these cases. Florida Family Law Rule 12.285 requires parties in divorce proceedings to provide financial documents within 45 days. All assets and debts are supposed to be disclosed, even if one spouse claims those as separate property rather than marital property. The court needs a complete picture of the financial situation.
When one spouse intentionally omits information or provides false information, they lose credibility with the court and can be sanctioned for violating court rules.
What Counts as a Hidden Asset?
An asset is any item or resource with value, so one spouse may try to conceal many different types of assets during a divorce. These include:
- Cash
- Cryptocurrency
- Funds in offshore accounts
- Investment accounts
- Interests in closely-held businesses
- Collectibles or other valuable personal property
Property may be hidden physically, concealed electronically, or transferred for someone to hold until the divorce is finalized. When one spouse owns a business, they may pay a nonexistent employee to hide funds or purchase property that is later returned or sold so the funds can be kept.
How Can Hidden Assets Be Discovered?
Attorneys frequently team up with forensic accountants to trace hidden assets.
Financial Records
Reviewing and comparing documents can often reveal discrepancies that help trace missing assets. Many documents and records can provide critical clues, including:
- Tax returns
- Credit card statements
- Bank statements
- Brokerage account records
- Loan documents
- Business records
Records are analyzed to look for unusual transactions, significant transfers, or business expenses that could be fraudulent.
Discovery Tools
A skilled divorce attorney can use legal discovery tools to reveal information that can indicate the location and value of hidden assets. These tools include requests for production, depositions, subpoenas, interrogatories, and requests for admissions.
What Happens When Hidden Assets are Found?
The outcome when hidden assets are located will depend on factors such as the timing of the discovery, the value of the assets, and the degree of fraud involved in concealment. The court may:
- Order the previously undisclosed asset to be included in the marital property division analysis
- Allow the other spouse to continue with additional discovery to determine if additional property has been concealed
- Sanction the offending spouse for violating discovery rules.
If you discover fraudulent concealment of assets after the divorce is finalized, you may have grounds to reopen the case and amend the property settlement.
What Should You Do if You Suspect Your Spouse is Hiding Money?
If you believe your spouse may be trying to hide money or other assets, there are steps you can take to protect yourself:
- Make a list of known accounts and other assets
- Preserve copies of all financial documents that you have lawful access to
- Compare older statements and tax returns with current information
- Look for unusual transfers or other unexpected transactions
- Share your concerns and findings with a divorce lawyer skilled in handling complex assets
At that point, your attorney can help you determine next steps, which may include formal discovery or a forensic accounting analysis. Follow the rules even if your spouse doesn’t; don’t try to hack into accounts, guess passwords, or install spyware to access information illegally.
FAQs About Hidden Assets in a Florida Divorce
Can a judge make my spouse pay for hiding assets?
Yes, if a spouse intentionally concealed assets during the divorce, that spouse could receive less property in the equitable distribution process. What if my spouse spent money on an extramarital affair and hid the expenses from me?
When a spouse spends money on travel, gifts, or other expenses connected with an extramarital affair, those expenditures can be treated as the intentional dissipation of marital assets. Section 61.075 of the Florida Statutes allows the court to consider expenses incurred up to two years before the divorce petition is filed, and those wasteful expenses can be counted against your spouse when marital assets are divided.
What if I discover hidden assets after the divorce?
If you discover hidden assets after the divorce is finalized, your attorney may be able to reopen the case so you can receive an equitable share of the additional property.
Prompt Action is Critical if You Suspect a Spouse is Hiding Assets in Divorce
To protect your legal rights and your ability to recover a share of concealed assets, act as quickly as possible if you think your spouse may be hiding property during your divorce. The longer you wait to investigate, the harder it may be to trace the ownership trail.
At Leap Frog Divorce, we have extensive experience tracing hidden assets and securing interests in complex, high-value property in divorce. We work to resolve conflicts cordially and privately when possible, but if necessary, we know how to advocate effectively in court. For a confidential consultation to discuss how our team can help with the divorce process, contact us online or call 407-890-7297.
