Frequently, parties to a Florida divorce interfere with the distribution of property to keep their spouse from having any sort of claim, either because of its monetary value, sentimental value, or any other reason that motivates a spouse to intentionally conceal an asset of monetary or sentimental value. Hidden assets are assets that have not been disclosed to the other party.

In a Florida marital dissolution action (Florida divorce), all marital assets will be distributed in an equitable manner between both spouses, including real and personal property as well as retirement pay. Equitable distribution will often begin with the premise that distribution should be equally distributed, but will not necessarily end with a distribution that is monetarily equal between both parties.

In a Florida divorce, the process of investigation that involves locating, examining and valuing of all marital assets for the purposes of equitable distribution is called discovery.  Discovery is generally a term that describes the fact gathering stage in a divorce.  This process may be used for discovery of all marital assets for distribution and for other issues that may ensue in a marital dissolution. One method that attorneys use to identify all possible marital assets include an analysis of tax returns, which they will use as a guide to trace the origins of income as well as any withholding taxes.

When a Fort Lauderdale divorce attorney traces the origins of withholding tax, he may discover a hidden asset that a party to the action has failed to disclose as required.  Tax documents often are an effective tool for tracing assets or providing clues regarding undisclosed assets, such as loans, real property outside of the state, income earned out-of-state and other hidden assets.  Discovery also permits your Florida divorce attorney to request balance sheets or accounting records from businesses, bank statements, loan applications, and other documents that include financial information.  Common methods of discovery include a request for production of documents or interrogatories (written questions and responses), depositions and other tools that allow a party to request information from one’s spouse.  If the other party in a Florida divorce does not provide adequate responses to discovery requests, your Florida divorce attorney may file a Motion to Compel and seek an attorney fee award as a sanction.

If a party to a divorce fails to disclose or intentionally hides assets during the divorce process in Florida, the party engaged in omitting or hiding assets can be subject to significant sanctions.  One negative consequence of hiding assets, whether by concealment or destruction, may include an adverse impact on the overall distribution of marital assets.  A factor used by the court in determining a fair and equitable distribution of property in a divorce includes consideration of whether a party has intentionally destroyed, depleted, dissipated or otherwise wasted a piece of property that is considered marital property.  Nondisclosure may also adversely impact one’s interest in the overall distribution of marital property because both parties are required to identify each and every marital asset and liability, non-marital assets and ownership interests, and provide a complete valuation of all assets.  Removal of property out of state as an attempt to conceal such property may result in a writ of bodily attachment.

Furthermore, concealing or hiding assets may result in contempt of the court if a party engages in misrepresentation submitted to the court and served to the other party.  Concealing, removing, or intentional destroying assets interferes with the court process and can lead to negative effects on the final division of property in a Florida divorce.  If you are considering a divorce in Florida and believe your spouse is hiding or diverting assets, it is important that you contact a Fort Lauderdale divorce lawyer immediately to protect your interest.  At Eric N. Klein and Associates, PA, we regularly represent clients faced with a spouse that is engaged in hiding assets or trying to prevent a fair and equitable division of marital property so call us today at 954-580-8080.