Squandering the Nest Egg: Dissipation of Marital Assets

What can you do if your spouse is gambling, spending, going into debt, drinking away, or hiding away marital assets during your divorce? Dissipation of marital assets, or intentional waste/depletion of marital property in Florida is a serious concern. It can include excessive spending (outside of what was typical during the marriage), spending related to an extramarital affair, mismanagement of finances (accumulating credit card debt etc.), intentional waste of marital funds or assets, such as through gambling, and asset devaluation (for example destruction of property, withdrawing money from a 401K or withdrawing large sums in cash), diverting funds to friends or family members to shield it from the divorce process.

Florida Courts typically equitably divide all assets and debts acquired during the marriage. However, if it can be proven that one spouse dissipated assets, the court may adjust the division of assets to create a more fair result. The party proving dissipation of marital assets must establish that the assets in question were part of the marital estate; that the actions taken to deplete the assets occurred without the other spouse’s knowledge or consent; that the spending did not benefit the household/marriage; and that the wasteful behavior occurred during the marriage (particularly close to the time of separation). Florida courts can consider dissipation of assets that occurred after filing and within two years prior to filing for divorce, however in limited circumstances the court can look back further.

Potential Remedies

If dissipation is established, there are several potential remedies the court may consider:

• Unequal property division

• An award of 50% of the dissipated amount

• Allocating assets/debts as separate property

• Penalties

• Issuance of an Injunction

  If the dissipation is ongoing, it may be necessary to request that the court freeze certain marital assets during the pendency of the divorce.

  In proving dissipation, having the proper evidence is pivotal. Having the proper legal representation is important. You should monitor all accounts closely and document any questionable transactions. Your attorney may need to conduct further discovery to get a full financial picture and it may be necessary to utilize a forensic accountant to trace hidden assets. Contact Cody Law, PLLC to discuss your specific situation and whether an unequal division of marital property may be appropriate, as well as other remedies, due to dissipation of marital assets.

Double Edged Sword: When a Parent Withholds Time-Sharing

Emotions almost always run high during a divorce or other family law action, especially when child custody is involved. Florida has two elements that make up custody: Parental Responsibility and Time-Sharing. Time-sharing means how many overnights each parent has with the minor children. Recent law changes in Florida mean that the court now starts with the presumption that equal time-sharing is in the best interests of the child. In order to overcome the presumption of “fifty-fifty” a parent must show by a preponderance of the evidence that an equal time-sharing plan would not be in the child’s best interest. But what if there is no court ordered time-sharing in place yet? Can one parent unilaterally withhold a child from the other? Can doing so backfire?

When no time-sharing order exists, typically both parents have equal rights to the child and may both spend time with the child, even if the child is living primarily in the marital home with one parent. While this sounds simple in theory, it often leads to complex and messy situations if both parents are not willing to co-parent pending a formal order. Until a formal order is entered, there is no clear benchmark for who makes decisions, when and where children should be on each day, or what to do if parents disagree. This often leads to one parent withholding the child from the other, sometimes out of retaliation, confusion, or fear. In reality, often one parent has been the primary caretaker and day-to-day decision maker and may, by default, end up making unilateral decisions for the children while the case is pending. Courts often view withholding a child from the other parent as problematic and potentially harmful.

In some circumstances, for instance where there are immediate concerns for a child’s safety, temporary withholding might be defensible. However the actions should be followed by prompt formal legal action. If the witholding is simply based on personal conflict or retaliation by a parent it will likely not be excused by the court. Under Florida’s best interest factors, maintaining ongoing contact with both parents is a priority, absent any serious safety concerns, any interference with that could backfire, leading to various consequences, including:

• Court ordered make-up time

• Loss of credibility in future proceedings

• Court-ordered parenting education

• Court ordered therapy

• Denial of shared parental responsibility

• Potential loss of timesharing on a permanent basis by the withholding parent

Withholding time-sharing is a double edged sword and it is recommended you seek the guidance of an attorney before making a decision to unilaterally withhold time. Obtaining a temporary time-sharing order while your case is pending can protect both parents and offer consistency and stability for the child. Once a formal time-sharing order is entered, both parents have the ability to enforce the order should conflict arise.

What Can I do if the Other Parent is Withholding Our Child?

If the other parent is preventing you from time-sharing, there are several protections available under Florida Law, including:

• Enforcement of an existing parenting plan

• Contempt

• Request for make-up time-sharing

• Petition to establish a permanent or temporary time-sharing plan

• Petition to modify

In the meantime it is important to document all missed time-sharing exchanges, text messages, voicemails or e-mails denying time-sharing, all notes on your attempts to exercise time-sharing, and any other relevant potential evidence.

Having the guidance of counsel is important when it comes to child custody. Your attorney can help you get your message across to the judge, present crucial evidence, negotiate on your behalf and prevent mistakes in judgment while awaiting an order. If you are dealing with the other parent withholding time-sharing from you or if you believe withholding may be necessary, it is important to speak with an attorney right away. Contact Cody Law to discuss your individual situation and see if a legal remedy is available to you.

Go Away and Leave Me Alone: Florida Injunctions for Protection

An Injunction (sometimes referred to as a restraining order) is a Court Order which directs a person not to have contact with another. An Injunction can prevent abuse and threats of abuse and can prevent an abuser from contacting or coming near a victim. Florida has various forms of injunction available:

• Domestic Violence Injunction: This applies to people who live in the same household or who have children with each other. “Family” can include a spouse, an intimate partner who you live with but are not married to, blood relatives, adopted children, step parents or step children.

• Dating Violence Injunction: This applies to people who are or have been in an intimate or dating relationship and who have interacted with their abuser within the six months prior to filing the petition for injunction.

• Sexual Violence Injunction: This applies to people who do not live together or share children together but when a sexual battery has been committed and reported to law enforcement.

• Repeat Violence Injunction: This applies when none of the other categories of relationship (i.e. Domestic, dating, or sexual) apply. This type of injunction can be used between neighbors, coworkers, former friends etc. For this type of injunction to apply there must have been at least two incidents of physical violence, threats, or stalking and one or more incident must have occurred within the six months prior to filing the petition for injunction.

• Stalking Injunction: These are intended to protect a person from being followed, harassed, or cyberstalked by another person. For this type of injunction there does not need to have been any prior relationship (this can apply to persons such as former friends, acquaintances, neighbors, or coworkers etc.). Florida defines stalking as “Willfully, maliciously, and repeatedly following, harassing, or cyberstalking another person.” Harassment is defined as “engaging in a course of conduct that causes substantial emotional distress and serves no legitimate purpose.” Cyberstalking is defined as “repeated, unwanted online contact or surveillance that results in distress to the person targeted.”

Once the correct type of injunction is determined, the process is initiated by the filing of a Petition for Injunction. The injunction process is designed to be accessible to parties with and without counsel, so an unrepresented individual can go to the family law department of the County Courthouse and access the forms to complete and file, during business hours. If the incident occurs outside of business hours then abuse should be reported to law enforcement, who can contact the clerk if it is determined an injunction is needed. Although the process is accessible with or without counsel, having representation throughout the process can be beneficial in ensuring you obtain the protection that is necessary.

When the forms are completed and submitted to the Clerk, a determination can be made immediately of whether a temporary injunction will issue. If a temporary injunction is entered by the judge, the violator will be served a copy of the petition, notice of hearing and the temporary injunction. A hearing on the injunction will be set within 15 days. The hearing will be evidentiary, meaning evidence can be admitted and testimony offered. Having experienced counsel to represent your interests can be extremely beneficial during the hearing, to make sure you can show the judge the required elements to enter the injunction on a permanent basis. Counsel can also facilitate a possible consent agreement with the other party and/or their counsel so that a hearing may not be necessary to obtain the relief sought.

Contact Cody Law in St. Augustine, Florida to learn more about the process and for guidance in obtaining an injunction for protection.

Five Things To Do After Your Divorce is Final

Once your Final Judgment of Dissolution is entered there are several things you should do right away. At Cody Law we strive to help you navigate through the next steps a create the best possible start for your new life ahead. Here are five steps to take post-divorce.

1. Change your name: If you requested restoration of your maiden name and your final order grants the name restoration, you must take the necessary steps post-final judgment. Obtain a certified copy of your final dissolution right away and take it with you to the Social Security Administration office to report your name change. You will also need to update your license with the Florida Department of Highway Safety Motor Vehicles within ten (10) days after the name change is confirmed with the Social Security Administration.

2. Change your estate planning documents and beneficiary designations: Once the divorce is final, any document which lists your former spouse as your beneficiary will become automatically void under Florida law. If you do intend to leave your former spouse as the beneficiary, you will need to take steps reaffirm your intentions (for beneficiary designations you will need to contact those institutions individually). You should create a new estate plan, including your Will, Trust and advanced directives like your durable power of attorney, health care surrogate, living will and declaration of preneed guardian.

3. Implement a joint calendar: if the final order includes timesharing of minor children with your former spouse, the easiest way to organize timesharing is to create a joint calendar. You can coordinate school schedules, extra-curriculars, planned vacations etc. and know ahead of time if any changes to the regular schedule need to be discussed. Popular calendar options include Google Calendar, Custody X Change, or parenting apps with calendaring features, such as Our Family Wizard.

4. Execute any necessary documents to complete transfer of assets: Depending on what the final judgment states regarding transfer of marital assets, you may need to execute documents such as transfer of title for vehicles or quit claim deeds. If you are recieving funds from a pension or 401K, you may need to have a QDRO (Qualified Domestic Relations Order) completed to receive your portion. Your attorney should guide you regarding what documents need to be executed post-divorce to ensure that all assets are properly transferred.

5. Speak to your accountant: Finally, you should contact your accountant who can advise you regarding any potential tax implications of the divorce. Transfer of property, alimony and dependency exemptions for the minor children may affect your tax filings post-divorce.

Contact our office for more information and to set up a consultation for divorce or any Florida family law matter.