Florida divides property based on an equitable distribution policy. This means courts split any property deemed marital property (assets acquired during the marriage or that became mingled during it) based on fairness instead of doing a simple 50-50 split.
A problem arises when one spouse, in an attempt to get more than his or her fair share, attempts to conceal assets. Certain signs may indicate such an attempt.
1. Financial behavior shifts
Unexplained financial changes are one of the most common signs of hidden assets. This could include sudden shifts in spending habits, large cash withdrawals or unexplained transfers of money between accounts. A formerly frugal spouse suddenly spending lavishly on expensive items or vacations may indicate an attempt to make it appear like he or she has less money. Buying large amounts of cryptocurrency without any previous interest is also a potential indicator of asset concealment since cryptocurrency is currently an unregulated completely digital currency.
Transferring money may be a spouse trying to hide funds in secret or overseas accounts. Spouses may also gift large amounts of cash or valuable heirlooms to family members or friends to devalue themselves on paper with the expectation of receiving them back after the divorce. Overvaluing debts or overpaying taxes are also potential red flags.
2. Shifts in business practices
If a spouse owns a business, changes in business practices could also be a sign of asset concealment. This could include delaying business deals or payments until after the divorce finalization or undervaluing the business to reduce its worth in the divorce settlement.
3. Shifts in documentation location
Another red flag is missing or incomplete financial documents. If a spouse is unwilling to provide complete financial records or if documents go missing, it could be a sign of attempted asset concealment
When spouses hide assets in a divorce, they deprive their partners of their rightful share of marital assets. Individuals who suspect asset concealment can investigate and/or report their suspicions to the court which will then investigate. A forensic accountant can help follow financial trails and uncover stashed away funds.
