Virtually no divorce is a pleasant or easy experience. However, when one spouse acts dishonestly and takes steps to prevent their husband or wife from getting their fair share of assets as they end the marriage, things can become particularly contentious. Further, actions like these can drag out the proceedings and prove costly for both parties.
Some people try to hide assets so their spouse can’t locate them (or even know they exist). This can be done by doing something as simple as “lending” them to a relative or friend or something more complex like hiding them in their business or in offshore accounts.
Another way some spouses try to shortchange their soon-to-be ex is to “waste” or “dissipate” assets before or during the divorce process. This can be a violation of Florida’s equitable distribution law.
How do courts determine if someone is dissipating assets?
Florida courts require spouses to preserve their assets as much as possible in the lead-up to and during the divorce. Certainly, they have to continue to spend money on basic living expenses and maybe new ones if they’re moving out of the family home. However, intentionally overspending using funds that are subject to division or destroying assets so that they aren’t available to divide can be considered “dissipation of assets.”
If a spouse accuses their soon-to-be ex of this type of wrongdoing, the court will look at things like whether the actions appear to be normal financial behavior based on the spouse’s history or if they constitute reckless or negligent actions intended to minimize the value of the marital estate.
The following are generally red flags:
- Giving or otherwise transferring marital assets to third parties
- Intentionally destroying or neglecting property (to devalue it)
- Accumulating excessive credit card debt for luxuries and nonessentials
- Excessive gambling using marital assets
If a judge finds, based on the evidence presented, that one spouse is guilty of dissipation of assets, they can order that the other spouse receive a larger share of marital assets in the final property division settlement to make up for the losses.
Anyone who has reason to believe that their spouse is dissipating or hiding marital assets needs to act quickly to stem the damage. Having an experienced legal team can help take the appropriate action to preserve remaining assets and help ensure a fair division of property.