Dividing marital assets during divorce is seldom a straightforward process, and it can become far more complex when one or both spouses have offshore assets or foreign business holdings. Florida, known for its beautiful beaches and sunny weather, is a popular destination for individuals with international ties. For this and other reasons, divorce cases involving offshore wealth are not uncommon in the state.
The following are problems often encountered in carrying out equitable distribution in a Florida divorce when a spouse has offshore assets or business holdings:
- Hidden Assets — Divorce cases involving offshore assets are more susceptible to one spouse attempting to conceal assets or income in foreign accounts. Tracing and uncovering hidden assets can be an intricate process, requiring forensic investigators.
- Valuation challenges — A major hurdle is accurately determining the value of offshore assets or business holdings. Valuation can be particularly tricky due to varying accounting standards and the potential for partial or complete hiding of assets. Valuation often requires the assistance of financial experts well-versed in international financial matters.
- Jurisdictional complexities — Florida courts do not have jurisdiction over foreign assets, making it crucial to determine which court has the authority to make decisions on disposition of these assets. International treaties and agreements may come into play.
- Enforceability of judgments — Even if a Florida court issues an order of equitable distribution, enforcing it against offshore assets can be difficult. In some cases, the court order may be in conflict with the laws of the foreign jurisdiction. If a foreign country does not recognize or enforce a U.S. divorce judgment, additional legal proceedings may be necessary.
- Tax implications — Offshore assets often come with complex tax implications, including potential excise taxes and reporting requirements. A divorce attorney with expertise in international tax matters can help navigate these waters and minimize liabilities.
- Language and cultural barriers — Communication barriers and differences in cultural norms can add to the challenges in such litigation. Legal documents, financial records and negotiations may need translation and cultural interpretation to bring about a fair resolution.
- Preventing asset dissipation — When a divorce is imminent, a spouse with offshore assets might attempt to dissipate or transfer those assets to avoid including them in equitable distribution.
Given these unique challenges when dealing with a Florida divorce involving offshore assets or foreign business holdings, seeking the guidance of an experienced international family law attorney is paramount. An attorney can provide strategic advice, retain necessary experts and protect your rights and interests throughout the process.
If you or your spouse has offshore wealth, the Law Offices of Lawrence S. Katz, P.A. in Miami can manage the complexities of your divorce in an efficient and cost-effective manner. We are skilled in international divorce and well-equipped to address the intricate issues associated with these cases. Call us at 786-304-1180 or contact us online to schedule a consultation.