Division of assets during a divorce can be complicated even when the spouses are cooperating, but it becomes far more problematic when either spouse attempts to conceal assets. Such actions can lead to a prolonged legal battle at increased costs, potentially leaving one spouse unfairly disadvantaged. If you believe your spouse is not being candid about all the property they hold, you should be aware of the secretive tactics they might be using.
During a Florida divorce, each spouse to a divorce has a duty to disclose all assets and liabilities. They must supply a variety of supporting documents, which include state and federal tax returns, pay records, property deeds, bank statements, brokerage account statements, retirement account statements, life insurance policies, lease agreements, loan records and documents relating to investments such as stocks or bonds. Both spouses have a continuing duty to supplement records as their financial statuses change.
However, spouses heading toward divorce sometimes seek to put money and assets aside so as to reduce the amount they must share during equitable distribution. You can help bring their deception to light if you know the signs to look for.
There are a number of common ways in which your spouse may try to hide assets. These include:
- Failing to disclose or denying the existence of an asset
- Fraudulently transferring the asset to a third party
- Creating and paying off a false debt
- Moving assets to offshore accounts
- Keeping money or other property in safe deposit boxes
- Creating false business expenses and losses
- Receiving and hiding unreported income
Many of these actions leave a paper trail. Knowing what to look for can help you spot red flags that may indicate your spouse is withholding information.
If you are in the process of a divorce and suspect your spouse is hiding assets, your attorney — with help from a forensic accountant — can examine financial statements, tax returns and other documents for discrepancies. We can determine whether funds have been removed from joint holdings and can investigate to find their whereabouts. We can also take steps to seek to recover them. If deceptive tactics are shown, we can request a court injunction to prevent additional hiding of assets.
You can also use the power of the court to find and recover missing assets. If the court determines a spouse is intentionally hiding or withholding financial information in violation of the disclosure duty, he or she may be held in contempt, which can result in fines and/or imprisonment. Perjury charges might apply if a spouse lies under oath. They might also face criminal fraud charges for concealing assets from the IRS. As an added punishment, the spouse may have to pay court costs and your attorneys’ fees.
The Law Offices of Lawrence S. Katz, P.A. in Miami provides compassionate representation in contested family law matters in the Florida courts. Call us today at 786-304-1180 or contact us online to schedule a consultation.