During a Florida divorce, both parties must submit financial affidavits for when it comes time to consider the distribution of the marital estate. Since Florida is an equitable distribution state, the marital estate might not be divided evenly during the divorce. There is, however, a presumption in favor of dividing the marital estate 50/50. The Florida courts will consider the financial impact of the divorce on both spouses. If one spouse would be disadvantaged by a 50/50 split, then the court is authorized to distribute more of the marital estate to the lower-earning spouse.
Because of this, some individuals attempt to hide assets from the court, fail to report assets on their financial affidavit or conceal the presence of bank accounts or investments. As you may imagine, this is not legal. It can result in severe penalties for the individual who attempts to conceal assets. In this article, the Tampa, FL divorce lawyers at Westchase Law, P.A. will discuss the penalties for hiding assets in a Florida divorce.
Penalties for hiding assets during a Florida divorce
During divorce proceedings, both parties are required by law to disclose their assets and debts. Full disclosure is vital to the divorce process since it forms the foundation for equitable distribution. Failing to disclose certain assets or hiding assets is considered a form of fraud and is punishable by law.
If a family court learns that you’ve hidden assets during your financial disclosures, it can levy serious penalties against you. Not only will the court favor your spouse during divorce proceedings, it will also believe that it can no longer trust you as a litigant to tell the truth. You can be held in contempt of court, charged with perjury, and face actual jail time. You may also be disfavored when it comes to child custody and other key decisions that need to be made.
In many cases, the party who has illegally hidden assets from the court will be forced to pay their spouse’s legal fees for uncovering the subterfuge. For example, if one spouse hides a bank account with substantial funds, that individual could lose more than just half the value of that bank account. If discovered, they can also face fines and penalties.
How can I legally protect my assets during a Florida divorce?
The correct way to protect your assets during a Florida divorce is with a pre- or post-nuptial agreement. The agreement can specify that certain bank accounts, credit cards, investment accounts, real estate, or other assets remain your exclusive property during the marriage. That means that they do not become part of the marital estate and are not subject to equitable distribution.
Talk to a Tampa, FL Divorce Lawyer Today
Westchase Law, P.A. represents the interests of Tampa residents who are going through divorce. If you suspect your spouse is hiding assets, we will work diligently to uncover the fraud. Call our Tampa family lawyer today to schedule an appointment, and learn more about how we can help.