How Florida Courts View Strategic Asset Transfers and What You Can Do About It
When a marriage is heading toward divorce, financial anxiety often sets in—and with it, the temptation to move or protect assets before litigation begins. One of the most common (and most problematic) tactics is the transfer of property, cash, or other valuable assets to friends or family members in the hope of keeping them outside the reach of equitable distribution. These transfers may be labeled as “loans,” “gifts,” or “business transactions,” but when examined under a microscope, many prove to be strategic moves meant to deprive the other spouse of their rightful share.
Under Florida divorce law, asset transfers made in anticipation of or during a divorce are subject to intense scrutiny. If a judge finds that a spouse transferred assets in bad faith to avoid equitable distribution, the court may reverse the transaction, assign the full value of the asset to the other spouse, or impose sanctions.
A knowledgeable Tampa divorce lawyer knows how to uncover these deceptive practices through discovery and litigation, ensuring that the marital estate is accurately represented and fairly divided.
What Counts as an Improper Transfer of Assets Before Divorce?
An improper or fraudulent transfer is typically defined as the deliberate movement of property, funds, or valuables out of the marital estate without the other spouse’s knowledge, with the intent to hide those assets or remove them from the pool of divisible property.
Common types of pre-divorce asset transfers include:
- Transferring title to real estate to a sibling or parent
- “Gifting” vehicles, art, jewelry, or other valuables to friends
- Wiring large sums of money to relatives under the guise of a loan
- Transferring business interests into newly created LLCs or partnerships
- Selling assets below market value to cooperative third parties
- Moving funds into accounts held jointly with adult children
- Paying off fake debts allegedly owed to friends or family
Florida law considers these types of transfers suspicious—particularly when they occur shortly before or during the divorce process. A Tampa divorce lawyer will investigate the timing, structure, and motive behind each transaction.
Florida’s Equitable Distribution Law and the Duty of Full Financial Disclosure
Under Florida Statute §61.075, courts are required to divide all marital assets and liabilities equitably. That process cannot occur unless both parties provide a full and honest accounting of their financial circumstances. This duty is formalized in Florida Family Law Rule of Procedure 12.285, which mandates the exchange of:
- Financial affidavits
- Bank account statements
- Tax returns
- Investment portfolios
- Property deeds and mortgage records
- Credit card and loan documentation
When a spouse omits a transfer or fails to disclose an asset that has been moved to a third party, it violates the court’s rules and undermines the integrity of the proceedings. A Tampa divorce lawyer can compel disclosure, issue subpoenas, and cross-examine witnesses to uncover these transactions.
The Timing of Transfers Matters
One of the most critical elements in evaluating a suspicious transfer is the timing. Florida courts look unfavorably on transactions that occur:
- Within one year before the filing of divorce
- After a spouse consults with a divorce attorney
- After marital difficulties become apparent
- Shortly after the other spouse requests financial disclosures
The closer the transfer is to the start of litigation, the more likely it is that a judge will view it as an effort to conceal assets.
A Tampa divorce lawyer will collect a full timeline of events and present a compelling case that the transfer was not an innocent act, but a calculated move to hinder equitable distribution.
Marital Waste and Dissipation of Assets
Even if a transfer is not fraudulent in the traditional sense, it may still be considered marital waste or dissipation. Marital waste refers to the intentional depletion or misuse of marital funds for non-marital purposes, especially during the breakdown of the marriage.
Examples include:
- Giving large “gifts” to family members with no expectation of return
- Making uncharacteristic financial decisions (e.g., selling a car for half its value)
- Paying for someone else’s legal fees or living expenses without agreement
- Using marital funds to support an extramarital relationship
- Draining bank accounts without notifying the other spouse
When marital waste is proven, Florida courts may compensate the innocent spouse by awarding them a larger share of remaining assets or assigning the full value of the wasted property to the offending spouse.
A Tampa divorce lawyer can file a motion for unequal distribution based on proven waste or dissipation.
How Courts Unwind Fraudulent Transfers
When a court finds that a spouse has fraudulently transferred assets to family or friends in anticipation of divorce, it has several remedies available:
- Set Aside the Transfer
The judge may declare the transaction void and order that the asset be returned to the marital estate for equitable distribution. - Assign the Asset’s Value to the Transferring Spouse
If the asset cannot be recovered (e.g., money was spent or the third party is outside the court’s jurisdiction), the court may assign the entire value of the asset to the spouse who made the transfer. - Award a Larger Share of Remaining Assets to the Innocent Spouse
To balance the inequity caused by the hidden transfer, the court may award more of the known assets to the non-transferring spouse. - Sanctions and Attorney’s Fees
If the transfer was made in bad faith or in violation of court orders, the judge may order the offending party to pay the other spouse’s legal costs.
A Tampa divorce lawyer will use financial records, witness testimony, and forensic accounting to support a motion to unwind or penalize fraudulent transfers.
The Uniform Fraudulent Transfer Act (UFTA) and Divorce
Florida has adopted the Uniform Fraudulent Transfer Act (UFTA), codified in Chapter 726 of the Florida Statutes. UFTA allows courts to invalidate transfers made with the intent to hinder, delay, or defraud creditors—including a divorcing spouse with a financial claim.
Under UFTA, a transfer may be fraudulent if:
- It was made to an insider (e.g., family member)
- The transfer was made shortly before or after a significant debt or obligation arose (such as a pending divorce)
- The transferor retained control of the asset
- The asset was transferred for less than reasonably equivalent value
These criteria are often met in pre-divorce transfers. A Tampa divorce lawyer can invoke UFTA to obtain injunctive relief, freeze assets, or recover transferred property.
Red Flags That a Spouse May Be Transferring Assets to Others
Signs that your spouse may be moving assets to friends or relatives before divorce include:
- Sudden or unexplained withdrawals from joint accounts
- New account openings you were not informed about
- Transfers labeled as “reimbursements” or “loans” to family members
- Discovery of real estate deeds transferring property out of your spouse’s name
- Vehicles, art, or jewelry suddenly “missing” or “borrowed”
- Spouse makes cryptic comments about “protecting their money”
- Pay stubs show reduced income, but lifestyle hasn’t changed
A Tampa divorce lawyer will launch a full-scale financial investigation when these red flags appear.
Tools to Discover Pre-Divorce Transfers
A Tampa divorce lawyer will use a variety of legal tools to identify and challenge improper asset transfers:
- Subpoenas to Banks and Financial Institutions
These force disclosure of account records, wire transfers, and newly opened accounts. - Requests for Production
Demand all documentation regarding loans, gifts, and transfers to third parties. - Interrogatories and Requests for Admission
Require your spouse to answer written questions about each transaction under oath. - Depositions
Allow attorneys to question the spouse and recipients of the transferred assets in a formal, recorded setting. - Third-Party Discovery
Friends, siblings, and parents who received assets can be compelled to produce evidence and testify in court. - Forensic Accounting
Experts can trace assets through complex transaction webs, layered LLCs, or shell accounts.
These tools are essential in proving the existence and intent of improper asset transfers.
Protective Orders and Injunctions to Stop Transfers
If you believe your spouse is actively trying to transfer assets during the divorce, you can file a motion for:
- Temporary Injunctions: Preventing the sale, transfer, or disposal of assets
- Asset Freezes: Halting all activity on bank or brokerage accounts
- Lis Pendens: Placing a public notice on real estate to prevent it from being sold
A Tampa divorce lawyer can file emergency motions and obtain immediate court intervention to protect the marital estate.
Post-Judgment Remedies for Hidden Transfers
In some cases, a spouse discovers that assets were transferred only after the divorce is finalized. If this happens, Florida courts allow post-judgment remedies under:
- Rule 1.540(b): To reopen a final judgment for fraud or misconduct
- UFTA: To unwind fraudulent transfers
- Contempt Proceedings: For violations of court orders or disclosure obligations
Time limits apply, so it’s critical to contact a Tampa divorce lawyer as soon as the discovery is made.
Preventing Pre-Divorce Transfers Before Filing
If you are considering divorce and suspect your spouse may attempt to move or hide assets, you can take proactive steps:
- Copy All Financial Records
Bank statements, tax returns, account balances, real estate deeds, and business ownership documents. - Monitor Joint Accounts
Set up alerts, review statements, and freeze accounts if needed. - File for Divorce Strategically
Filing early may prevent your spouse from taking financial action outside court supervision. - Request Standing Orders
Florida counties often issue standing orders upon filing for divorce that prohibit either spouse from transferring assets. - Act Quickly if Transfers Occur
Don’t wait. Your Tampa divorce lawyer can take immediate legal action.
How Courts Evaluate Loans to Family and Friends
One of the most common tactics is to claim that a transfer was a legitimate loan. Florida courts scrutinize these claims carefully and look for:
- A written promissory note
- A fixed repayment schedule
- Interest provisions
- Evidence of repayment
- Terms consistent with an arm’s-length transaction
If no such evidence exists, the court may conclude the transaction was a sham designed to remove assets from the marital estate.
Valuing Assets Transferred Before Divorce
If a spouse has moved property out of their name, the court may still assign a value to that asset and attribute it to the transferring party. This includes:
- Real estate “gifted” to parents or children
- Jewelry “loaned” to a sister
- Cash “repaid” to a friend with no documentation
In such cases, the court may determine the fair market value and award the equivalent amount to the innocent spouse in the division of marital property.
FAQs
Is it illegal to transfer assets before filing for divorce in Florida?
Not always. But if the transfer is made to hinder, delay, or defraud the other spouse, courts can void it and impose penalties.
What if my spouse says the asset was a gift to their parents?
Florida courts will examine the timing, documentation, and intent behind the transfer. If it appears strategic, the asset may be added back to the marital estate.
Can I recover assets my spouse gave away before the divorce?
Yes. Your Tampa divorce lawyer can ask the court to unwind the transfer or assign the value of the asset to your spouse.
Can I file a lawsuit against the person who received the transferred asset?
In some cases, yes. Under UFTA, you can bring a claim against the recipient of a fraudulent transfer.
Does it matter if my spouse transferred the asset before we separated?
Yes. Transfers made while the marriage was intact may be harder to challenge but can still be scrutinized if made in anticipation of divorce.
How long do I have to challenge a transfer after the divorce?
Under Rule 1.540, you typically have one year to seek relief from a judgment due to fraud, but UFTA may offer additional time depending on the circumstances.
Can a Tampa divorce lawyer get records from third parties?
Yes. Subpoenas and depositions can be used to obtain bank records, deeds, and testimony from friends or family members who received assets.
Should I accept a settlement if I suspect hidden transfers?
No. Settle only after full financial discovery has been completed. Otherwise, you may lose your ability to recover the assets.
Will a forensic accountant help in my case?
Yes. They can trace funds, evaluate business transactions, and identify patterns of fraud that support your legal claims.
Can courts penalize my spouse for hiding assets through transfers?
Yes. Judges may award a larger share of property to the honest spouse, impose sanctions, and refer the matter for criminal or civil penalties. A Tampa divorce lawyer will pursue all available remedies.
The McKinney Law Group: Uncontested Divorce Done Right for Tampa Families
You’ve made the important decisions—now let us help you formalize them. At The McKinney Law Group, we help Tampa clients complete uncontested divorces efficiently and correctly, from filing to final judgment.
Call 813-428-3400 or email [email protected] to book your consultation.