In many divorce actions, a couple will disagree as to how marital property should be divided. In some instances, a party will go so far as to intentionally divert funds to prevent their spouse from accessing them. The courts typically do not look kindly on such behavior, as demonstrated in a recent Florida divorce action in which the court found that the wife’s act of depositing marital funds in an irrevocable trust constituted misconduct. If you have concerns about how a divorce could impact your finances, it is in your best interest to meet with a Miami divorce attorney as soon as possible.
Factual and Procedural Background
It is reported that the husband and the wife were in the process of divorcing. After the petition for dissolution was filed, the wife transferred approximately millions of dollars in marital funds into an irrevocable trust. She allegedly did so to protect the husband from wasting the assets after the divorce, given his history of being reckless with marital funds and subject to extortion schemes. Allegedly, in the trial court’s final judgment of divorce, it allocated the money in the trust to the wife for purposes of equitable distribution, which increased the value of the marital estate and ultimately prompted the court to require the wife to pay the husband an equalizer payment of approximately $2 million. The wife appealed, challenging the trial court’s ruling.
Intentional Diversion of Marital Funds
On appeal, the trial court ruling was affirmed. Specifically, the court found that contrary to her assertions, the wife’s actions solely benefitted her and were unrelated to the marriage and, therefore, constituted misconduct and intentional diversion of marital funds. Continue reading ›