What to Do If Your Spouse is Selling Assets Before the Divorce is Finalized

It should deeply concern you if your soon-to-be ex has begun selling off assets before the divorce is finalized. Those assets likely belong to you too, and you should have some say in how they’re distributed post-divorce. Any proceeds from those transactions would likely belong partly to you.

If your spouse is selling assets, you should inform your divorce attorney right away. You’ll also want to keep track of any account withdrawals, property transfers, stock liquidations, and any other financial transaction executed by your spouse. You’ll want to track everything with dates and numbers.

The Largo, FL divorce attorneys at Cairns Law, P.A. see this situation routinely. We can help you file a motion to temporarily freeze your assets. In this article, we’ll discuss some of the nefarious financial games spouses can play during the divorce process.

Florida is an equitable distribution state when it comes to dividing marital assets

 When you marry, you begin accruing value and assets to the marital estate. The marital estate is what gets divided during divorce. As an “equitable distribution” state, Florida law requires assets to be divided fairly between the two spouses. While there is a presumption that a 50/50 split is fair, the presumption is rebuttable. In other words, the court need not necessarily divide the marital estate in half. They can favor one spouse with a greater share of the marital estate than the other. This generally happens when one spouse has a much higher earning power than the other spouse or when one spouse abused or misused resources from the marital estate.

Dissipation of assets during a Florida divorce 

Selling assets without the consent of your spouse can be considered “dissipation” under Florida law. In Florida, “dissipation” (Florida Statute § 61.075) happens when one spouse sells, spends, damages, lends, or destroys marital assets without the other spouse’s knowledge or consent. This would cause the amount of assets in the marital estate to become smaller leaving less estate for equitable distribution.

The Florida courts generally frown upon suspected dissipation or asset hiding in anticipation of divorce. A family court judge would scrutinize any transaction that was made during a divorce. Generally speaking, the practice is frowned upon. But the burden falls on the accusing spouse to prove the dissipation of marital assets.

When dissipation is proven, the courts could award the harmed spouse more than 50% of the marital estate or a more significant share of the sold asset’s value. In addition, Florida judges have extensive latitude when it comes to penalizing a spouse for dissipating the marital estate. In extreme instances, the judge can hold the spouse in contempt of court or order prison time. This, however, is rare. The accused spouse’s bad faith generally requires the judge to grant the other party better terms in the divorce.

Talk to a Clearwater, FL Divorce Lawyer Today 

Cairns Law, P.A. represents the interests of spouses in divorce actions. If you believe your spouse is dissipating the marital estate, you should call our Clearwater family lawyers immediately.