Unpacking the Complexities of Trust Funds in High-Net-Worth Divorces

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High-asset divorces are more complicated than divorces for couples of modest means, especially if trust funds are involved. A trust fund defines the formal relationship between the grantor, trustee (a third party), and beneficiary. An individual with assets transfers them into a trust, which defines who will manage the property if they cannot do so.

A trust fund is essential for protecting assets, estate planning, and naming beneficiaries. No couple expects that when they say, “till death do us part,” they will need to divide assets in a divorce, but as we know, half of all marriages fail. Unpacking the trust fund may become essential to dividing assets in a Florida divorce.

Suppose you plan to divorce or marry, and significant assets are involved. In that case, you may want advice from a family law attorney with decades of experience in high-asset divorces and marriages. Crystal Collins Spencer can help answer your questions during an initial consultation.

Trust Funds

A trust is one way to protect assets before a divorce, especially since an individual cannot move assets during a divorce. At that time, the court will consider the timing fraudulent.

There are two different types of trust funds.

  • A revocable trust means the grantor can change it at any time, has full access, and can move assets into and out of the trust. A revocable trust, overseen by the grantor, a party to the divorce, means the trust may be divided during a divorce.
  • An irrevocable trust protects property against creditors and legal judgments. It cannot be modified for any reason, which creates complications when a divorce is pending.

There are other types of trusts, and whether they are subject to division depends on the trust’s language and when it was formed.

Funding a Florida Trust Fund

Dividing a trust fund in a high net-worth divorce requires that many questions are asked and answered, for example:

  • Was the trust set up before the marriage? The funds then may be the sole property of the grantor if that can be determined.
  • If set up during the marriage, did marital funds contribute to the trust fund? Monies earned during the marriage are subject to division unless a prenuptial or postnuptial agreement specifies that the trust assets are not to be included in a divorce and both partners agree to that language.
  • Dividing a trust fund becomes more complicated if your assets have been co-mingled during the marriage. Have trust assets been deposited into a joint account? Besides cash assets, was one person working and the other taking care of the children? All contributions to the marriage will be considered in a divorce, even non-financial contributions.
  • Was the trust set up to benefit the children or their education? If so, it could be subject to division in a divorce.

Your Florida Divorce and Family Law Specialist

Attorney Crystal Collins Spencer understands that dividing a trust fund in a high net-worth divorce requires accurately valuing it. She and her team will investigate who contributed to the fund and whether all assets have been disclosed.

Ms. Spencer has seen some creative avenues someone may take to hide assets, and she understands how to uncover them.

Offshore trust funds will also be subject to investigation and division in a divorce if both spouses contribute financially to the trust. Even non-financial contributions need to be valued and considered an asset subject to division.

As a soon-to-be-single person, concessions made before and during a marriage should now be reevaluated as you plan on moving ahead without the financial support of a marriage partner.

Whether property, brokerage accounts, business interests, homes, cars, or art, you must consider the tax implications of assets post-divorce.

Seeking legal representation when considering a divorce can put you in the best financial situation as we negotiate your separation. Now is not the time to passively agree to any settlement to get it over with. It is also not the time to try to shift assets, as the court will not consider that favorably.

For more than thirty years, Attorney Spencer has advised high-net-worth individuals facing divorce in Pensacola, Sandestin, and Fort Walton.

Let Crystal Collins Spencer’s professional guidance give you the peace of mind you will need moving forward.

Call her Pensacola office at (850) 795-4910 to arrange a consultation to help you move forward in your life.

Protecting Intellectual Property Rights During a High Asset Divorce

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A high-asset divorce can bring particular complications to the settlement table.  Both parties will understandably want to retain what they consider their individual property, but a marital settlement in Florida will divide assets equitably.

While intellectual property (IP) often cannot be divided, its future profits are a consideration for a divorcing couple.

To retain your particular intellectual property rights, you must contact a family law specialist who understands the intricacies a high-asset couple brings to the table.

Intellectual Property

What is intellectual property?  It can be a book, script, radio or television show, an invention, computer code, art, or any creative effort that can be patented, trademarked, or copywritten to protect the owner.

A patent is the most common type of protection for intellectual property rights. With a patent, the owner can sell the invention or license it to another party. IP can deliver value to its owner, who can then develop, protect, and monetize the property.

Protecting Intellectual Property Rights

Several things must be done to get organized as the first step in protecting intellectual property rights during a Florida high-asset divorce. You must know what you have and its value.

  • First – Compile a list of intellectual property (IP) assets and gather the documents that validate such agreements, such as certificates, financial records, and licensing agreements. Determine who contributed to the IP, including financial and other contributions, contracts, and nondisclosure agreements,
  • Second – Hire a professional appraiser who can value the intellectual property in the present and future. That will be speculative but provide some idea of future income from the IP. Consider tax implications and the ongoing cost of maintaining the IP. A forensic accountant or IP attorney will be needed to accurately determine the value of your property before considering how to distribute it equitably in a divorce proceeding. The other option is to use this assessment as the basis for a payout now, not in the future.
  • Third – Protect your intellectual property by closing loopholes, updating confidentiality agreements, and preventing unauthorized access to sensitive information or trade secrets. Document the contributions to the IP made by both spouses.
  • Fourth – Your divorce settlement must address all of your IP concerns. With the help of your attorney, a mediation might include a post-nuptial agreement that addresses how intellectual property will be treated in the divorce. Include in the mediation the assessment of what the value of the IP will be in the future. A non-disclosure agreement, as well as other contracts, may be required as part of the mediation.
  • Fifth – There needs to be an enforcement mechanism in your mediated divorce settlement that may include monitoring and protecting intellectual property rights and a penalty for any violations.Your

Your Florida Family Law Attorney

Among the assets a divorcing couple will address, intellectual property has the potential to generate some of the most contentious and bitter fights.

That’s because it is personal property, and the owner may be very attached to his property and not willing to put it in the pool that is to be equitably divided.  However, if there is present and future value to the IP, and it falls under the definition of a marital asset, unless you’ve negotiated otherwise, it may need to be divided in a Florida divorce.

Attorney Crystal Collins Spencer advises clients that the rights to the income generated by IP will be subject to a discussion about an equitable division along with property, investments, cars, homes, and even time with the children.

At this time, staying closely in touch with the mediations is advised to explore your options thoroughly. Equitable division in Florida does not mean equal, and a settlement may become more favorable if you can work with your ex-spouse rather than have the court impose a divorce settlement.

Attorney Spencer has nearly four decades of experience in high net worth and complex divorce matters. She will be your ally in the division of IP if you call her Pensacola office, Spencer Law, at (850) 912-8080 to begin the conversation. Her family law practice represents individuals from Pensacola to Ft. Walton, Sandestin to Santa Rosa Beach, and Panama City.

Navigating the Transfer of Real Estate During a High Asset Divorce

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A Florida divorce is one of the most stressful events you can endure. Many individuals would like to stay put in the family home, especially if children are involved, and one of the most frequent questions from divorcing couples is whether they can keep the home.

The answer is it depends.

Florida is an “equitable distribution” state. That means that unlike community property states, where assets are tallied and divided “equally,” a divorcing Florida couple can divide assets as equitably as they determine. They will outline their decision in a divorce settlement crafted with the help of their attorneys.

In a high-asset divorce, there may be contributions to the marriage that deserve consideration even though they are not financial. The division of assets will be finalized in a divorce settlement that may not divide assets in a 50/50 manner but instead in a manner that reflects the contributions each made to the marriage.

Transferring Real Estate

The court will first determine if the real estate is marital or separate property.

If marital property, under Florida law, married couples hold the property as tenancy by the entireties, meaning they are both 100 percent owners of the property and entitled to any profit and liable for any debts associated with the property.

In the case of separate property, if the home was owned by one of the divorcing spouses before the marriage, it could remain the property of that spouse, providing that joint assets were not used to improve the home or pay off the mortgage. If the couple used marital assets to maintain the house or to pay down the mortgage and taxes, the equity in the home may be subject to an equitable distribution.

If assets are needed to address the divorce settlement, one spouse may agree to a buyout over the property. A buyout releases one owner in exchange for assets, usually cash. That may be a necessary outcome when one person wants to remain in the home and the other wants to leave.

In a marriage where the primary asset is the home’s value, the court may order the house sold as part of the divorce.

Key Words to Transfer Real Estate in a Florida Divorce

Dividing Florida property during a divorce is accomplished by filing a quitclaim deed. Real estate is transferred via a deed, and a quitclaim deed is the most efficient way to remove the name of a soon-to-be ex-spouse, removing all of their interest in the property, not just half.

The recipient (grantee) is named as is the grantor (granting the property to the other). The deed does not indicate whether the grantor has an interest in the property.

Within families, quitclaim deeds are often used when the grantee understands the grantor has some ownership of the property.

Transferring real estate during a high-asset divorce should involve keywords to transfer the property correctly.

Under Marital Settlement Agreement and Final Judgment of Dissolution of Marriage should include:

  • The date
  • The correct names and addresses of the grantor and grantee
  • The legal description of the property and parcel identification number
  • Using a notary and both grantor and grantee signing before two witnesses
  • Recording the deed at the county recorder’s office

The grantee then will have a clear title to apply for a new mortgage in their sole name. The other spouse then will have no further legal obligations to the mortgage holder.

This property division should only be undertaken if the grantee maintains the home and pays all the bills.

If the divorcing couple has settled, the final divorce judgment will likely state both parties must sign the quitclaim deed. If one refuses, the other can take him back to court.

The receiving spouse can legally transfer the title by filing a copy of the divorce judgment with the clerk of court records.

You will want to accomplish a transfer of property at the time of the divorce so that you are not surprised down the road when you go to sell a property you thought you had an interest in and find you must negotiate with a former spouse whose name is still on the property.

Your Florida Family Law Attorney

Transferring real estate during a high-asset divorce can be complicated and open to interpretation. That is why Crystal Collins Spencer is your greatest asset at this time. She has spent more than three decades delving into the tactics one spouse may use against the other in a high-asset divorce. Let her experience work for your side in negotiating a favorable dissolution of your marriage.

Attorney Spencer works with individuals and complex family matters in Pensacola, Sandestin, Fort Walton, and the surrounding Florida communities. Contact her to schedule an appointment at (850) 795-4910.

Divorce and Philanthropy: How to Handle Shared Charitable Endeavors

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You and your spouse have decided to go your separate ways. For most couples, that means dividing assets and making decisions about the children and custody issues. 

Some couples grow their wealth while married and are committed to charitable endeavors. The Family Wealth Report estimates in 2020, charitable giving amounted to $471 billion. The majority of high-net-worth families, nearly 90 percent, contributed to this amount.

Whether you have a private foundation, a donor-advised fund, or volunteer your time because philanthropy is vital to you, these forms of giving must be reassessed when a couple divorces. 

Family law attorney Crystal Collins Spencer specializes in high-net-worth individuals changing their family structure. A consultation with her will help send you in the right direction for your future needs.

Assessing Your Commitment

As is sometimes the case, one of the soon-to-be-ex partners may have more of a commitment to charity than the other. During your divorce discussion, the couple should honestly assess each person’s degree of dedication. Is your standing in the community based on giving to charities? How will you continue to fulfill that commitment? Or is that commitment important to you in your new life?

Your shared value to philanthropy may go through a significant shift when you become single. 

Some things to consider are:

  • Can one partner be more active in any charitable organization and its future growth?
  • Can the other partner remain present in name only with less of a contribution?
  • What is the role of individuals –donors, advisors, or trustees, and how does that impact their gift after a divorce?
  • To what extent have financial contributions represented your spending together, and can that continue? 
  • To what degree do finances versus volunteer hours represent your contribution?

It’s entirely possible that one of the partners may want to launch in an altogether new direction after the divorce. That may be represented by a new charity, even in a different area of the country.

If you both remain committed to the same charity, will you be comfortable working together in the future, even when you are not married? You may both decide that your generosity and commitment to a cause override any animosity between you, ultimately benefiting both parties and the cause you are both committed to. 

All of these possibilities must be considered, preferably under the guidance of a third party.

Philanthropic Settlement Agreement

Attorney Spencer may suggest if you are committed to moving forward with your philanthropic efforts, she can help craft a settlement agreement to define charitable assets. If you use stocks, real estate, or cash directed to the charity, you must ascertain which person will continue owning those assets. 

A charitable mission statement may help define gift-giving objectives in the future.

Will your new arrangement require you to rearrange a board of directors in the future? If you have a foundation, how will that be handled when you are no longer married? 

Contributors no longer own the charitable entity but may be able to advise its direction moving forward. Should a donor-advised fund be divided into separate funds? Alternatively, a charitable trust can name a charity as the beneficiary and include both heirs and a charity. 

The agreement should specify the stated goals for the future of the organization. 

Also, what contribution each individual will make, whether financial or volunteer hours, will be decided. 

Tax consequences will be attached to your charitable giving, and the couple needs to ascertain which option is best.

Your Florida Divorce and Family Attorney 

Dividing a couple’s assets into charitable purposes can be complicated and must include advice from estate planning, tax, and non-profit specialists. 

Attorney Crystal Collins Spencer represents couples throughout Florida and in the Pensacola, Ft. Walton Beach, and Sandestin, Florida, areas focusing on family law.

In her 35 years advising couples, she has encountered many high-net-worth couples with complicated uncoupling needs. Ms. Spencer will counsel you with sound, aggressive strategies to allow you to move forward with your new life, with particular attention to maintaining your strong sense of personal responsibility.  

Call our Pensacola office at (850) 795-4910 to arrange a consultation on your needs moving forward.  

Sources:

Family Wealth Report
https://www.familywealthreport.com/article.php?id=192813

Maintaining Privacy and Confidentiality During a High-Net-Worth Divorce

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Avoiding a lengthy court battle is the best way to keep personal matters private and confidential when a marriage ends. Preplanning can circumvent the potential for unwanted disclosure and stress on both parties. 

This can be accomplished by the spouses agreeing (before marriage) to a prenuptial agreement (prenup) that outlines how property and finances will be divided should the marriage conclude. 

In some cases, spouses also have a postnuptial agreement if any additional arrangements need to be considered due to changing circumstances.

Because court records are in the public domain, mediation or a prenup will keep your personal business private. That may be preferable to airing your business, giving up control to the court, and letting the judge decide the best outcome. 

A split can be uncontested if there are no unresolved money issues between the divorcing couple. However, more often than not, when the stakes involve couples with several million dollars or more, and there is a disparity in wealth, we can expect high drama and the proceedings to be contentious.

Prenuptial agreement

A prenuptial agreement contributes to a more peaceful dissolution of a marriage, bypassing a costly and lengthy court battle. The agreement can involve:

  • Division of assets and liabilities
  • Spousal support
  • Care and cost of the children
  • The family home and other real estate holdings 
  • Attorney fees

If the divorcing couple is willing, negotiation can help iron out some sticking points between the parties and allow them to dissolve the union. Otherwise, they may be locked in a contested divorce for years. 

At this time, you will benefit from the guidance of an experienced, compassionate Florida Family Law attorney. The wrong move or accusation can exacerbate an already contentious situation and elevate the fight to a new and unwanted level. 

There is also the public interest consideration in the details of your split, the valuation of assets, and the maneuvering of one or both spouses to hang on to what they believe is theirs. 

Children, unfortunately, are often caught up in this War of the Roses, and experiencing a public airing of personal matters may not be in their best interest.  

Divorces are almost always messy, but Crystal Collins Spencer will be your advocate to get through the painful process with the best possible outcome.  

Negotiations

If you and your spouse cannot agree, the court may take over the dissolution of the marriage. Without a doubt, there are things you will not agree with if that happens. Once you hand over the power to the court, you should be prepared to compromise beyond the level to which you are comfortable.

When privacy is a concern in a high-stakes divorce, both parties should be able to find the motivation to reach a fair compromise that allows each party to move on with their lives.

Your Experienced, Compassionate Florida Family Lawyer  

Ms. Spencer has experience dealing with high-stakes divorces where privacy is a concern. In some instances, she brings in experts to delve into offshore holdings, to probe one’s digital life, and multi-tiered financial arrangements. Ms. Spencer enjoys the reputation of being a tough negotiator who has seen every trick in the book performed by those who want to hide assets. 

The goal will be equitable distribution under Florida divorce laws. Properties, pensions, investments, retirement accounts, foreign holdings, business assets, trust accounts, family holdings, boats, cars, jets, commercial and residential real estate, jewelry, and art will all be valued and equitably distributed. 

Alimony, rehabilitative alimony, the cost of maintaining a family home, and legal fees can all become part of the negotiation. Debt accrued by one or both parties must be included in the final negotiation. 

The tax consequences looking forward will be considered as part of the long-term value of your assets.

Attorney Crystal Collins Spencer will be your advocate in crafting the structure of your divorce agreement that works for you and your family moving forward. 

Let her compassionate guidance and experience help you during this difficult time. Call our Pensacola office at (850) 795-4910 to reach Ms. Spencer to begin the conversation.   

Sources:

SmartAsset
https://smartasset.com/financial-advisor/high-net-worth-divorce

Mitigating the Risks of Business Depreciation During High Asset Divorces

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Divorces can be complicated, and that is especially true if there are high assets involved. While both spouses must be transparent about all of their assets, it’s also crucial that they are valued accurately. Failure to do so can result in an uneven and even unfair distribution of assets.

In Florida, equitable distribution of marital assets is the guideline for divorce. That will include anything of value, whether property, house, bank accounts, or businesses.

When dividing the business asset, which may be the asset with the highest value, it first must be determined if the business is a marital asset. If it is, to mitigate the risks to the company during a divorce, some moves can be put into place either before or after the marriage to make its division more equitable.

When sizeable assets are involved, consulting with an experienced, compassionate family law attorney specializing in high-asset divorce can protect the impact on your business and, ultimately, on your relationship.

Prenuptial Agreement

If one spouse owned the business before the marriage, kept assets in a separate account, and made no money with that business during the marriage, there would not be much to divide. However, any appreciation during the marriage is subject to division unless a prenuptial agreement specifies how the business will be divided.

Before the wedding, a prenuptial agreement should detail how the business assets will be distributed in a divorce. Separate attorneys will represent each partner, and the business division should be negotiated to include the division of depreciation and appreciation of the business.

Sometimes, the business will remain with one spouse, and its value can be offset by agreeing to divide other assets, such as a house or property.

A prenuptial agreement should consider the potential impact on other partners to mitigate risks to the business.

It may be challenging to determine the value of a business down the road, so its current value should be estimated, and both parties need to agree on the methodology to be used to value the asset in the future.

The benefit of a prenuptial agreement is that both partners enter into it when they are most agreeable, about to enter into marriage, and want to avoid conflicts in the future.

Postnuptial Agreement

A postnuptial agreement is crafted after the marriage to determine what happens to a business in the event of a divorce. The other spouse may agree that the company is not subject to marital distribution, mainly if the other spouse founded it before the marriage. If that is not the case, the post-nup should establish how much appreciation or depreciation the spouses will share.

Suppose both spouses are involved in the business. In that case, they must determine whether, upon divorce, the company is dissolved, one partner retains ownership, or it continues under a new partnership agreement.

Hiding Assets

If you suspect your spouse is trying to conceal assets, Crystal Collins Spencer has the tools she needs to uncover hidden assets. She can bring in a forensic accountant to discover where assets are and their origin.

This is especially important if one spouse does not handle the family finances.

A forensic accountant is like a detective. They will conduct a detailed review of bank and tax documents to determine their consistency. Employers may help a divorcing spouse by withholding a bonus until the divorce is final. An employer can defer benefits, a company car, or a salary increase, so they are not subject to equitable distribution. A forensic accountant can uncover that tactic.

We may need to hire a valuation expert to determine the value of the business before its division in a Florida divorce.

Your Florida High Asset Divorce Attorney

If a divorce is imminent, the business can be protected by maintaining detailed records, including personal and business expenses and premarital versus marital funds.

Crystal Collins Spencer has extensive experience with high-asset divorces and can advise you to what extent the business is a marital asset or separate property. She has the experience to hire the experts needed to value the case for the court’s consideration and to gather the evidence essential to your argument.

This is not a time to try and litigate your most valuable asset. Divorce can complicate the simple division of assets. Call Crystal Collins Spencer at Spencer Law at her Pensacola office at 850-912-8080 to get started.

Dealing with the Tax Consequences of a High Asset Divorce

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Are you facing a divorce? Expect all aspects of your life to change. This is particularly true if you are part of a high-asset couple. 

Florida law states that fair and equitable is how assets are divided. With a high-asset couple, the division and tax implications can be more complicated by the valuation of a business, marital property, assets, or future income.

You will want to fully consider the implications of your tax liability by working with an experienced family law attorney. 

Crystal Collins Spencer has decades of helping spouses involved in a high-asset divorce, as the tax consequences will now be on your shoulders as you file as a single or head of household. 

Transparency and Divorce

High-asset divorces have special considerations. Everyone must put all of their cards on the table and be transparent about their assets, including, but not limited to, bank accounts, both domestic and offshore, property, pensions, art, and jewelry.  

Unfortunately, some high earners think the rules do not apply to them. Instead, they may conveniently hide assets in little-known places and then file inaccurate and outright false information on the required financial disclosure documents.

This is a very serious mistake. Saving some money may cost you more and could even bring perjury charges and jail time. 

Another mistake is for one spouse to withdraw funds from a joint bank account. Technically, they are joint marital property and belong to each spouse equally. 

If one of the spouses has filed for divorce, an injunction may be in place that prevents you from withdrawing money. As a result, that spouse could be facing criminal contempt charges. 

Assume any financial moves you make at the last minute to deprive your former spouse will be frowned upon by the court.  

Family Law Attorney Crystal Collins Spencer has seen the creative accounting tactics of high-net-worth individuals who think the rules do not apply to them. 

They are very much mistaken when facing a seasoned family law professional who understands the tricks of the trade.

Tax Consequences in a High Asset Divorce

There will be tax consequences to a high-asset divorce that lawyers on both sides should consider before entering into a divorce settlement. For example:

Alimony or Spousal Support – Once upon a time, alimony was deductible from the payer’s taxes. If he made $200,00 a year and had to pay $50,000 in alimony, he could show his income was $150,000. 

Following the 2017 Tax Cuts and Jobs Act (TCJA), alimony is no longer deductible for the greater earner. Nor is it taxable as income to the receiver. 

Because of TCJA, a dependency exemption for children can no longer be a tax deduction.

This new dynamic may significantly alter how alimony is negotiated into the final picture. Obtaining alimony may become more challenging because of the higher tax rates that apply, and the individual paying alimony will no longer be able to receive an alimony deduction. 

The bill is not retroactive and only applies to divorces finalized after January 1, 2019.


Dividing Assets

Retirement accounts must often be divided in a high-asset divorce. The higher earner may use money from a 401(K) to pay alimony. To transfer retirement assets, a tax-free Qualified Domestic Relations Order (QDRO) will minimize the tax implication of moving retirement assets to the other spouse. 

Capital Gains can be minimized when offset by capital losses or transferring those assets to the spouse who is the lower earner.

Other Considerations

  • Monies acquired before marriage are generally not subject to equitable division.
  • Assets you inherited or were gifted to you are not divisible if you kept them in a separate fund from your spouse.
  • Legal fees related to your divorce are no longer deductible as they were a few years ago. Instead, they are regarded as personal expenses.
  • Children are considered dependents for the spouse who has physical custody. Tax credits are available to that parent. Child support payments are not tax deductible for the parent who pays or counted as income for the parent who receives them.
  • Your divorce settlement is not taxable, provided it was transferred under the divorce settlement and within six years of the end of the marriage. 

Your Florida Divorce and Family Attorney

Crystal Collins Spences has spent over 35 years representing divorcing couples involved in high net-worth divorces. She is highly respected in the field and provides sound, aggressive strategies in your best interest in your high-asset divorce. 

Let her move your life forward by arranging a consultation in her Pensacola office at (850) 795-4910.  

Sources:

IRS
https://www.irs.gov/taxtopics/tc452

Divorce and Debt Division: Legal Strategies for Managing Marital Liabilities

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Equitable distribution. Remember that phrase.

Unlike a community property state where assets are divided 50/50, in Florida, when a couple decides to divorce, expect the “equitable distribution” doctrine to apply in the division of both assets and liabilities. 

Divorcing your spouse can be a stressful time. You and your spouse have decided to end your partnership. But you will be better prepared if you understand the legal strategies for managing your divorce and marital liabilities. 

Crystal Collins Spencer has decades of experience helping couples end their marriages, even when there are complicated circumstances.

You only get one chance to dissolve this marriage equitably, and you want to make sure you explore every avenue available as early as you can. Talk to Crystal Collins Spencer to explore your options. 

Marital Assets

When a couple marries at a young age, they often do not start their marriage with assets. The bank accounts, pensions, and bonuses come later; if one is savings-minded, they accrue over time.

These are considered marital assets. Unless a premarital agreement states otherwise, these assets, whether bank accounts, property, or other valuables, are subject to equitable distribution upon divorce.

Assets acquired before the marriage are not subject to distribution, nor is an inheritance or gift. An exception may come when the individually-owned assets acquired pre-marriage or an estate is comingled with other accounts that are marital assets. 

Marital Liabilities 

The Florida court will consider each spouse’s earnings and earning potential, each person’s contribution to the marriage, how long they were married, and the number of minor children. 
Also, it important to consider is how much one person sacrificed career-wise to care for children or follow the other’s job or education requirements.

Liabilities include debt from a credit card, a student loan, a mortgage, or taking out loans on other assets. When it comes to liabilities, the following must be considered:

  • Maybe you saved all of your life. Your spouse spent everything he made and then some. If you are still married, the court expects you to pay the credit card bill, even if your name is not on the credit card.
  • The exception to this may be if one spouse wasted assets, spent without your knowledge, or gifted money to a third party. A forensic expert will investigate financial records to ascertain an accurate picture of who ran up the debt and for what purpose. Suppose the investigation reveals that your spouse acted recklessly, siphoning off marital assets for his purpose or hiding them from you and your attorney. In that case, you will be able to challenge whether they are your joint responsibility.
  • Occasionally, one spouse is losing money through a gambling or drug habit or due to his involvement in illegal behavior. Florida law allows you to go to a judge and obtain an injunction to stop the spouse from wasting marital assets. 


Manage Your Marital Liabilities
Debt in divorce can be accrued before the marriage, during the marriage, and there can be non-marital debt. Determining that will help determine who is responsible for paying.

Prenuptial Agreement – One strategy may involve getting a prenuptial agreement before you marry. The agreement will allow each person to specify what assets they expect to own or continue to own in case of a divorce. 

Postnuptial Agreement – After marriage, the couple may decide to get a postnuptial agreement to divide assets before a divorce. If the relationship is contentious, a postnup may be challenging to obtain. If it is not contentious, a postnuptial may ease any stress about ownership of material assets going forward. 

Separate Property – A business or individual property can continue to be owned separately if you do not co-mingle it. Once that happens, the court may consider it a marital asset. Neither party must sell or gift anything as the marriage is being divided since this will raise suspicion with the court.

Your Florida Family Law Attorney

Managing debt and liabilities in a Florida divorce can be particularly challenging. At this time, it’s vital to be transparent with your attorney. The discovery process is intended to reveal the assets and liabilities within the marriage.

Keep documents in an organized manner for easy access. Only with an accurate picture of the marital assets can they be fairly divided.

Crystal Collins Spencer has spent decades representing individuals who are facing a divorce in Florida. She can be reached in her Pensacola office at (850) 795-4910 to schedule an appointment.

Sources:
DivorceNet
https://www.divorcenet.com/states/florida/equitable_distribution_of_property

Divorce and Blended Families: Legal Rights and Co-Parenting Challenges

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Navigating co-parenting during and immediately after a divorce is a major challenge for many parents. Even if the divorce was mutual and obviously in everyone’s best interests, figuring out how to share your child is a learning process. It gets even more complicated when one or both parents remarry and have to learn how to co-parent while in blended families.

No matter where you are in your co-parenting journey, having the help of an experienced family law attorney in Pensacola makes the entire process easier. Call Crystal Collins Spencer at 850-912-8080 to set up a consultation with our team now.

Co-Parenting Concerns

Co-parenting can bring a number of issues to the surface, each of which you must work through with your co-parent. These range in severity from complete disagreements regarding the parenting schedule to minor spats about where the child’s favorite toys stay. Some of the issues you may need to work through include:

  • General expectations regarding communication
  • Conflicting parenting styles
  • Helping the child overcome the trauma of the divorce
  • When one parent requests a change in schedule to accommodate an event or obligation
  • The role of stepparents in the child’s life and in parenting
  • Disputes over schooling, medical care, and religion

The good news is that you’ll likely work through these and other issues as part of the divorce process. This means that even if these issues do crop up again, you’ll at least have a solid foundation to return to as you discuss them again.

Navigating Life as a Blended Family

Being part of a blended family can be an amazing experience for a child. Having more caring adults in a child’s life gives them a strong sense of support and security, so it’s in the parents’ and stepparents’ best interests to make the blended family environment a positive one. It’s not uncommon for new issues to arise when one parent remarries. The other parent may feel replaced in their child’s life, worry about the stepparent taking over their role, or feel that the stepparent will try to take on too much responsibility for the child.

It’s important to navigate this change with open and honest communication. Many parents feel better when they get to meet their child’s new stepparent early in the process. In many cases, this is enough to show the parent that the new stepparent will add to the child’s life—not take away from the parent’s role in it.

You may run across disputes or arguments that you simply cannot solve via communication. In these cases, you may want to bring in an expert. If the other parent is overstepping your parenting rights or attempting to interfere with your family, you may want to bring in an attorney to help you assert your rights. If the arguments aren’t causing legal issues but are damaging the co-parenting relationship, you might consider consulting a family therapist.

Parenting Strategies

Whether you’ve remarried, your ex-spouse has remarried, or you both have remarried, it’s important to remember that you are both on the same side. You both want what is best for your child, and remarriage doesn’t change that. Try to focus on the fact that remarriage gives your child more adults they can rely on for guidance and support. Some strategies that can help you and your co-parent reach a happy, stable place include:

  • Discuss your parenting plan in great detail and make important decisions before issues arise.
  • Focus on making your co-parenting relationship a positive one that allows your child to feel safe and supported.
  • Rely on community resources that help you both be better parents for your child.
  • Agree on a dispute resolution plan that you can use when disagreements arise.
  • Agree on when, where, and why you should communicate—for example, only discussing issues related to your child, utilizing a co-parenting communication app, and sticking to emergency issues only on the other parent’s time.

Get the Help You Need with Crystal Collins Spencer, Attorney at Law

We know that this time can be overwhelming, but you do not have to figure it out alone. With the team at Crystal Collins Spencer, Attorney at Law, you can get the legal support you need. Give us a call at 850-912-8080 or send us a message online to set up a consultation now.

What Are the Consequences of Hiding Assets During a Divorce?

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It is not unusual for high-net-worth divorce clients to attempt to hide some of their assets during a contentious divorce. After all, they worked for it, and it’s theirs. At least, that’s how they see it.  

But the court doesn’t agree. So try and hide assets during a divorce, and the Florida courts may show you that there are things worse than divorce.

If you think you can outsmart the court, you may be punished by having to provide your ex-spouse with a more significant amount than they otherwise would otherwise receive.

It is wise to understand your family finances, assets, liabilities, property ownership, pensions, and investment if you are facing a Florida divorce. Review your spouse’s spending and look for any questionable spending, missing bank statements, or overseas trips.

Your Florida Family Law specialist, Crystal Collins Spencer, will be your greatest ally guiding you at this time.

Florida Divorce Laws

The law is clear in Florida and applies to both soon-to-be-ex spouses.

Under the state’s divorce laws, the court must distribute a couple’s assets equitably. That means the distribution will be fair, even if assets and liabilities are divided unequally. The spouse who stayed home and cared for the children contributed to the marriage substantially as did the spouse who went to the office to work outside the home.  

If one spouse did not bring in an income, did not raise the children, and only spent money and accrued debt, the court will not look kindly at that contribution to the marriage.

It is generally advised that the couple develop their own distribution plan for assets, the home and cars, savings and investments, and pension plans. If they cannot, the court will impose a division, but it may not be to both parties’ liking.

Hiding Assets

During the negotiation phase, one spouse may introduce evidence that the other spouse is hiding assets that were accrued during the marriage or bought with money earned during the marriage.

There are many ways an offending spouse can try to improve his finances during a divorce.

They may undervalue property or income or overstate debts and expenses. It is essential that both spouses fully and honestly disclose their assets, and the court will order the offending spouse to disclose such assets. If they fail to do so, they could be held in contempt of court. Ultimately, they could be facing fines or jail time.

Things can get even more severe if the offending spouse lies under oath.

Criminal Perjury – They may make a false statement to the court while under oath in an attempt to hide assets. This is considered perjury. While hiding assets is not a criminal offense, committing perjury is a misdemeanor offense that can bring fines and up to one year in jail.

Contempt of Court – Additional criminal fraud charges may be levied on the spouse if they intentionally schemed to hide assets by making false statements to the court. The judge may declare the offending spouse is in contempt of court until the assets are revealed and turned over.

Reallocation of Assets – Instead of outsmarting the court, the offending spouse may find the tables turned on them. The judge can award more monies or property to the other spouse, even up to the amount the offending spouse tries to hide. They may also have to cover the other spouse’s legal fees spent in uncovering the hidden assets.

If you believe your spouse may be attempting to hide assets, you will want the help of experienced family lawyer Crystal Collins Spencer.

Your Florida Family Lawyer

Crystal Collins Spencer has seen these scenarios many times. Sometimes high-net-worth individuals believe the law doesn’t apply to them. They have been successful in other parts of their life and they may not be inclined to share in that success.  

Ms. Spencer will issue requests for documents and discovery. She will dig deep to investigate any attempt to hide assets, and she will enlist the assistance of a forensic accountant and other experts when necessary.

Crystal Collins Spencer has offices in Pensacola, Ft. Walton, and Sandestin. Let her 35 years of experience work for you in a contested divorce. Arrange your first meeting by calling (850) 795-4910 or make an appointment online.