Dealing with a Spouse Who Is Intentionally Hiding or Squandering Marital Assets Pending Divorce

Married couples spend years building up assets in the hope of gaining financial stability for their family, and this effort often requires many sacrifices to produce the desired results. Consequently, if a couple later divorces, dividing this property frequently becomes a contentious and highly litigated issue. Relinquishing control over something that required considerable effort is understandably difficult. However, unless a prenuptial agreement exists, the division of marital property is mandated by Florida law. Typically, marital property is equally divided between spouses under the premise that each provided equivalent contributions to the acquisition of the assets. But, if there are concerns about a spouse dissipating assets during the marriage and/or while the divorce is pending, the court can take steps to rein in this behavior if sufficient evidence is brought to its attention. Basically, the law does not want one spouse to unfairly and unilaterally gain a greater share of the marital property at the other spouse’s expense, and potentially leave the innocent party with no financial resources following the divorce decree. A woman from Florida is facing this situation as she seeks to stem the further loss of marital property to her husband’s mistress. The woman filed for divorce earlier this year after learning of the affair, and believes the amount that actually benefited the other woman is far in excess of the $11 million claimed by her husband. A discussion of what a spouse can do to stop dissipation, or waste, of marital property, as well as how to recover the squandered funds in a divorce, will follow below.

Actions Considered Dissipation of Assets

A spouse is considered to have dissipated marital assets if he/she attempts to hide or waste the assets, and thereby deprives the other spouse of the benefits the property provides. Dissipation can include transferring money to family members, wiring money to an overseas bank account, or intentionally running up huge credit card debts to punish the other spouse for getting divorced. Further, changing the beneficiary of a life insurance from a spouse to a mistress, for example, would also be viewed as waste since the intent is to deny the spouse the benefit and use of the proceeds. If this type of behavior is suspected, action must be taken as soon as possible to prevent further, and potentially unrecoverable, losses of marital property.

Injunctions

Florida law allows spouses to petition the court for an injunction to prevent the other spouse from disposing of or concealing the property. This means the spouse named in the injunction is prohibited from removing the property from the state or reducing its value in any way without the other spouse’s permission. If a spouse violates the injunction, the other spouse may file a petition with the court to hold him/her in contempt, and may also include a demand for the spouse to deposit a sum of money with the court to cover the value of the lost assets, if they are unrecoverable, as an incentive to prevent further violations. The payment is also usually necessary to avoid a jail sentence for contempt.

Property Division in Light of Lost Assets

If a spouse did dissipate marital property, this behavior can have a significant effect on the division of property in a divorce. The court will value assets lost to dissipation, and award a greater amount of the remaining marital property to the innocent spouse. If the remaining marital property is insufficient to cover the value of the wasted assets, the court will look to the guilty spouse’s separate property to find restitution for the other party.

Get Help

If you are concerned a spouse is disposing of assets without your knowledge or consent, talk to a family law attorney as soon as possible. The quicker legal action is taken, the greater the possibility of tracking and recovering the property. The All Family Law Group, P.A. represents clients throughout the Tampa Bay area in family law matters, including property division, and can help you get the settlement you deserve.  Contact the Tampa divorce attorneys and family lawyers at All Family Law Group, P.A. in Tampa Bay at 813-816-2232 for a consultation at no charge or email us.

by Lynette Silon-Laguna Google+

Figuring Out Property Division in Divorce

Part of a couple’s effort to build a life together includes acquiring property that speaks to the couple’s success and affection for one another. The longer a couple is married obviously affects the variety and amount of property they own together, and will represent the couple’s hard work and sacrifice. Having to split these assets during divorce is often a hard reality for parties to accept, but absent a prenuptial agreement, some amount of property division will occur. When people typically think about dividing property in divorce, houses, cars, and retirement benefits are the first things that come to mind, but any asset of value can fall within the definition of marital property, including more personal items like books and artwork. While the parties are always free to craft their own property settlement, a court will review the terms for fairness, and, in the absence of an agreement, divide all marital property according to the rules of Florida law.

Equitable Division

Property division in divorce starts from the premise that all marital property should be divided equally between the spouses, unless there is evidence that justifies an unequal division. Examples of issues that could impact the balance of property division are adultery and dissipation of assets by one spouse. Courts evaluate whether equal distribution is appropriate on a case-by-case basis, and use a number of factors to complete this analysis. These factors include:

• the contributions of each spouse to the marriage, including childcare and household services;
• the length of the marriage;
• the economic resources of each party;
• interrupting educational or career pursuits of one spouse for the benefit of the other spouse;
• the contribution of each spouse to increases in value of marital property, and the accumulation of liabilities; and
• the wishes of either spouse to keep the family home for the benefit of a minor child.

Note that both assets and liabilities are divided in divorce, but if one spouse is mainly responsible for the accumulation of debt, the court could leave him/her with the bulk of these obligations.

Marital Property

Now that there is a basic understanding of how property is divided, the next important piece in this issue is figuring out which property is subject to distribution. As noted above, all marital property is divided in divorce. Marital property includes:

• all assets and liabilities acquired by either spouse during the marriage;
• non-marital property that increased in value during the marriage due to the efforts of either spouse or the use of marital funds;
• gifts between spouses during the marriage;
• all vested and unvested benefits and interests in retirement funds, life insurance, and pensions;
• real property jointly owned by the spouses; and
• personal property jointly owned by the spouses.

Determining whether an asset qualifies as marital property is fairly clear in most divorce cases, but one area that may be less clear is interspousal gifts.  All gifts received from a spouse are automatically labeled as marital property, but the law permits a party to dispute this assumption by presenting “clear and convincing” evidence to the contrary. This standard of proof requires a party to present enough evidence that shows his/her contention is more likely true than not.

Retirement Plans

Finally, given the importance of retirement plans in a person’s overall long-term financial stability, it is natural to wonder what happens to these assets following divorce. Any interests or benefits in these funds that accrue during a marriage are considered marital assets and subject to distribution. In addition, military benefits amassed by active military personnel are also open to division if the marriage lasted 10 years or more.

Talk to a Florida Divorce Attorney

If you are in the midst of getting divorced and have questions about which property you are entitled to receive, talk to a divorce attorney to learn your rights. There are many legal nuances not covered here that affect how property is divided. The Tampa Bay law firm All Family Law Group, P.A. has extensive experience in all facets of divorce cases, and can help you receive a fair property settlement.  Contact the Tampa divorce attorneys and family lawyers at All Family Law Group, P.A. in Tampa Bay at 813-816-2232 for a consultation at no charge or email us.

by Lynette Silon-Laguna Google+

Key Terms Everyone Getting Divorced Should Know

Making the decision to divorce a spouse is one of the largest, hardest, and most far-reaching acts a person can make in their life. The impact of divorce goes far beyond the couple, especially if they have children, and extends to family and friends who may feel compelled to choose between the two parties. Given the emotional turmoil that accompanies divorce, it may be tempting to tune out and disassociate from the legal proceedings once a divorce lawyer is hired to handle the case. However, it is important to be engaged in the divorce process, despite the hard emotions, because of what is at stake. While a divorce attorney can represent the interests of a divorcing party, this person must maintain an active and engaged role throughout the process to ensure the outcome is in keeping with the party’s personal and familial goals. Further, it can be easy to assume one already knows the necessary information about divorce because of its constant presence in society, but unless a person has previous experience or legal training, there is a risk of oversimplifying what getting divorced actually means. Consequently, having a basic foundation in the key terms that come up in every divorce will help to prepare individuals on what to expect, which allows for thoughtful and informed decision-making.

What Is Divorce?

Divorce, or dissolution of marriage, legally severs the union between a couple, and puts them back in the same state they enjoyed as single individuals. Essentially, this process is the legal termination of a marriage, and how couples disentangle their lives from one another. Divorce is initiated when one spouse files a petition in court, and is concluded when the spouses agree on the division of property and responsibilities, or if the parties cannot agree, when the court forms the terms of settlement.

Types of Divorce

While it may appear that all divorces proceed in the same way, more or less, there are, in fact, several different types that affect how long it will take to finalize the divorce and how complex the case will be.

• Fault vs. No Fault Divorce – Florida, like most states, has no-fault divorce, which means it is not necessary to prove that the actions of one spouse caused the end of the marriage. Instead, all that is required is to state that the marriage is “irretrievably broken.” Florida retains one basis for a fault-based divorce based on the mental incapacity of a spouse, but this provision is rarely used because the incapacity must exist for at least three years and be confirmed by a judicial order.
• Contested vs. Uncontested Divorce – In addition to determining the grounds of divorce, one also has to assess whether the divorce is contested or not. A contested divorce means the parties do not agree on all issues, such as property division, support, or child custody, and the parties will need to file a standard divorce petition based whether they own property together or have children. Florida also offers a simplified divorce for couples that have no disputes or minor children together. Simplified divorces move through the system much faster, but require the parties to waive their right to a trial and to seek alimony.

Common Issues

Financial Concerns: Because married couples tend to intermingle income, property, and debts, it is necessary to determine how these areas will be divided in divorce. Specifically, divorcing couples must decide:

• how to divide assets, such bank accounts, stock portfolios, and pensions;
• how to divide debts;
• how to handle jointly-owned property, like the marital home; and
• whether to pay alimony to one spouse.

Children: Disagreements about children account for most of the disputes in divorce, as parents attempt to work out:

• Custody;
• child support; and
• parenting plans.

Talk to a Divorce Attorney

While this article gave you a brief overview of the components of a divorce case, each case is unique and could have issues not covered here. A divorce lawyer can advise you about the particular law that applies in your case, and help you get the outcome you want. The All Family Law Group, P.A. will walk you through the divorce process step-by-step as you begin the next phase of your life.  Contact the Tampa divorce attorneys and family lawyers at All Family Law Group, P.A. in Tampa Bay at 813-816-2232 for a consultation at no charge or email us.

By Lynette Silon-Laguna Google+

Resolving a High Net Worth Divorce

Going through a divorce is never easy. However, it often becomes much more complex and difficult when the couple has a high net worth. A high net worth divorce is usually complicated because the parties may have many investments and other assets that need to be accounted for and possibly divided in the divorce process. In Florida, assets that the couple has accumulated during the marriage are generally considered marital property and, as such, must be distributed equitably between both people.

Asset Distribution

Married couples with a high net worth often have a large number of assets. Some of the most common assets include:

• Bank accounts;
• Money market accounts;
• Pensions;
• IRAs;
• Trusts;
• Stocks and bonds;
• Investments;
• Property;
• Marital home;
• Vacation property;
• Vehicles;
• Jewelry;
• Antiques;
• Artwork; and
• Furniture.

It is important to create a complete list of all assets that are owned together. In general, the value of the assets at the time the couple separates or when one of the party’s files for divorce may be used to determine value. In these types of complex cases it may be necessary to get appraisals completed. This is particularly helpful when the current value of an item is not known. For example, a work of art may need to be appraised to determine the current market price.

Finding Hidden Assets

Those involved in complicated divorces with a large number of assets may need help making sure that they are all uncovered. In some cases one spouse may have a hidden account or property that has not been disclosed to the other person. A specialist may be needed to assist in locating all assets of the couple, regardless of where they are located. It is important to realize that you should not hide assets as you begin the divorce process. These issues will likely surface and the situation could backfire. Always discuss your financial decisions with your attorney immediately in order to protect yourself and your assets.

Non-Marital Assets

There are few items that may not be considered marital assets. Anything that you owned prior to the marriage may be considered your property alone. Gifts that you received during the marriage may be yours to keep and are probably not considered marital property. The same goes for any inheritances that you received during the marriage. However, if you do have an asset that was acquired prior to marriage, as well as gifts and inheritances during marriage, the asset will stay non-marital if it is not comingled with your spouse.  For example, the asset would be considered comingled if you put your wife or husband’s name on a non-marital bank account or his or her name on a deed for non-marital real property.  Otherwise, money and assets that were obtained while you were married generally belong to both spouses, regardless of which person actually earned them. If you have questions about marital assets your attorney will be happy to review the situation and help answer them for you.

Divorce Settlement Terms

Divorce requires both parties to try to resolve and agree on the major settlement terms. These include issues of distribution of assets and allocation of debts, alimony, child support, and custody. When couples have been together a long time or have a high net worth they are likely to have quite a complicated situation. Even so, these are decisions that must be made. The best resolutions are those that are made with assistance from a qualified divorce attorney. A skilled lawyer will guide you through the process and ensure that your rights are protected so you achieve a fair settlement. To learn more about high net worth divorce contact the Tampa divorce attorneys and family law lawyers at All Family Law Group, P.A. in Tampa Bay at 813-816-2232 for a consultation at no charge or email us.

By Lynette Silon-Laguna Google+