Divorce can bring out some of the most challenging sides of people. Unfortunately, for some, this might mean underhanded moves like selling off shared assets without their partner’s knowledge before the divorce process even starts.
This is called “asset dissipation” and can have serious consequences. At Mindful Divorce, P.A., we’ve guided many individuals through cases where one spouse tried to hide or sell assets. If you suspect your husband is secretly selling off assets before your divorce, here’s what you need to know and do.
Understanding Asset Division
When it comes to dividing assets in a divorce, the state follows a principle called “equitable distribution.” This means assets are split fairly, though not necessarily in a 50/50 fashion.
The court considers factors like the length of the marriage, each spouse’s contributions, and each person’s economic circumstances. While a spouse technically has the right to sell assets before a divorce petition is filed, doing so with the intent to deprive the other spouse of their fair share is treated seriously by Florida courts.
Are Assets Always Split 50/50 in Florida?
Florida courts aim for a fair split, which might not be an even half. They take into account things like the duration of the marriage, the contributions each spouse made (whether financial or as a homemaker), and the overall financial standing of both spouses.
This ensures that each partner gets a fair share based on what’s deemed appropriate under Florida Statute 61.075.
Premarital vs. Marital Assets
When dividing property, it’s essential to know the difference between premarital and marital assets.
What Are Premarital Assets?
Premarital assets are those acquired before the marriage, along with inheritances and gifts received by one spouse during the marriage. Generally, these are considered separate property and aren’t subject to equitable distribution.
Are Premarital Assets Protected in a Florida Divorce?
Usually, yes. The state courts tend to leave premarital assets untouched during a divorce. However, certain exceptions can change this.
Exceptions to Premarital Asset Protection
- Commingling: If you’ve mixed premarital assets with marital ones—say, by depositing inheritance money into a joint account—they may lose their separate status.
- Appreciation: If a premarital asset grows in value due to either spouse’s efforts during the marriage, that increase in value can be considered marital property.
- Use of Marital Funds: If marital funds were used to enhance or pay down debt on a premarital asset, the marital estate might have a claim to it.
Dissipation of Assets
Dissipation happens when one spouse intentionally sells, spends, or damages marital assets without the other spouse’s knowledge. If you suspect that your husband might be engaging in asset dissipation, it’s crucial to be on the lookout for warning signs.
Signs Your Husband May Be Selling Assets
Here are some red flags that could indicate asset dissipation:
- Unusual Withdrawals or Transfers: If large sums are suddenly missing from joint accounts, it’s worth investigating.
- Suspicious Sales of Valuable Items: Selling a car, a boat, or even high-value collectibles without prior discussion is a red flag.
- Increased Spending on New “Hobbies” or Travel: If your husband is suddenly indulging in costly activities or vacations, it may signal asset depletion.
Keep documentation and records of suspicious activities and transactions for legal actions. For instance, if you’ve noticed your husband transferring funds to a new account or frequently visiting pawn shops, these could be clues he’s moving assets out of reach. If asset dissipation is proven, courts may penalize the dissipating spouse by adjusting the division of remaining marital assets.
What to Do if You Suspect Dissipation
If you suspect your spouse is selling assets without your knowledge, you’ll need to act fast to protect your financial interests.
Immediate Action
- Contact an Attorney: The first step should be to reach out to a divorce attorney who can help guide you through the legal steps needed to secure your rights.
- Gather Evidence: Compile as much documentation as possible, including bank statements, transaction records, and receipts. This will be crucial if you need to prove asset dissipation in court.
- Monitor Financial Accounts: Regularly reviewing joint accounts can help identify any unusual withdrawals or transactions that may suggest asset dissipation.
Legal Steps
- Injunction: You may request a temporary injunction to prevent further asset sales. This is a court order that effectively “freezes” assets to keep them from being moved or sold during the divorce process.
- Discovery Process: The discovery phase of a divorce allows both sides to request information from each other. This might include submitting written questions (interrogatories), taking depositions, or issuing subpoenas for bank records and other documents.
- Asset Tracing: Forensic accountants can track assets and uncover where funds have gone. This step can help confirm if assets were intentionally hidden or sold.
Consequences of Asset Dissipation
If the court determines that asset dissipation has occurred, it can lead to serious penalties. Here’s what could happen:
- The court may order an unequal distribution of the remaining assets, favoring the non-offending spouse.
- The court can “add back” the value of the dissipated assets to the marital estate before dividing it, effectively treating them as if they’re still there.
- In some cases, the offending spouse might be required to reimburse the other spouse for their share of the dissipated assets.
- If the offense is particularly serious, the court can hold the offending spouse in contempt, which might even involve fines or jail time.
Lookback Period and Burden of Proof
In Florida, there’s a two-year lookback period for examining asset dissipation during divorce proceedings. This means that the court can review transactions and financial decisions made by either spouse within the two years before the divorce filing to determine if any actions were taken to unfairly deplete marital assets.
This period acts as a safeguard against last-minute attempts to hide, transfer, or waste assets, giving the court a clearer picture of each spouse’s financial behavior leading up to the divorce. However, there are exceptions. In some cases, the court may extend its scrutiny beyond two years if there is strong evidence that one spouse engaged in a pattern of behavior aimed at reducing the marital estate’s value, especially if this behavior continued over a prolonged period.
For instance, if a spouse can show that asset dissipation began before the two-year window but continued into it, the court may consider those earlier actions as part of the case. Each situation is evaluated based on its circumstances, and the court may use its discretion to look beyond the standard timeframe if necessary.
When it comes to proving asset dissipation, the burden of proof falls on the accusing spouse. This means that if you believe your husband has intentionally sold or hidden assets, it’s your responsibility to provide evidence that supports this claim. This can include bank statements, financial records, emails, or testimony from professionals like forensic accountants. Successfully proving dissipation often requires detailed documentation, so gathering as much information as possible is crucial.
Protect Your Rights in a Divorce
If you’re going through a divorce and suspect asset dissipation, the team at Mindful Divorce, P.A., is here to support you. We work to help you secure your financial future with a fair and transparent approach.
Unlike firms that work on hourly rates, we offer fixed-fee schedules so you’ll know the cost of our services upfront.
This reduces stress and allows you to focus on what’s important—protecting your assets and preparing for the next chapter in your life.
Our attorneys are experienced in asset division and cases involving dissipation, and we’ll work with you every step of the way to ensure your rights are upheld. Contact us today at 561-537-8227 for a confidential consultation.
Don’t let hidden asset sales jeopardize your future—reach out, and let’s secure your peace of mind together.
