Posted by Nydia Streets of Streets Law in Florida Divorce
What happens when a party is accused of hiding assets in a Florida divorce? This issue arose in the case Hess v. Hess, 2D18-3155 (Fla. 2d DCA October 11, 2019) in which the former wife appealed the trial court’s decision to deny her motion to set aside a marital settlement agreement and to enter a final judgment despite her claim that the former husband did not disclose certain U.S. Veterans Administration Department (VA) disability benefits.
After their divorce case was filed, the parties attended mediation and reached a full agreement. After the entry of the agreement, and prior to the final hearing in the case, the former wife became aware for the first time that the former husband was determined 70% disabled by the VA and therefore awarded disability benefits. The former wife filed a motion to continue the final hearing and to set aside the marital settlement agreement based on the the former husband’s alleged fraud in not disclosing the compensation. As the appellate opinion states “At the evidentiary hearing [on the former wife’s motion to set aside the agreement], during opening statements and before any evidence was introduced, the trial court commented that he was not finding any fraud or misrepresentation by the former husband. Similar comments were made by the trial court during the hearing. After the close of the evidence, the trial court made an oral ruling concluding there was no fraud or misrepresentation by the former husband. Instead of pronouncing findings in support, the trial court stated it was relying upon its earlier findings of no fraud or misrepresentation—the comments made by the trial court during the opening statements.”
The former wife appealed, arguing it was error for the court to deny her an evidentiary hearing in the sense that the court had already pre-judged the issue before any evidence was heard and relied on those pre-judgments in its order denying her motion. The former wife argued that by not disclosing his VA benefits, the former husband hid his income potential. The former husband countered that because his VA benefits were not subject to equitable distribution, his failure to disclose them was harmless.
The appellate court disagreed, holding “The former husband correctly argues his VA disability benefits are not a marital asset subject to equitable distribution. However, while a spouse would not be entitled to a share of the VA disability benefits, these benefits are nonetheless a source of income appropriate for consideration in a dissolution proceeding.” The appellate court agreed the former wife had been deprived of a meaningful evidentiary hearing, holding “Florida courts have consistently found error where a trial court prejudges a case.”
The case was remanded with instructions for a new evidentiary hearing. If you suspect the opposing party in your Florida family law case is hiding assets or income, it is best to speak with a Miami divorce attorney to understand your options in moving forward. A consultation can be spent going over the specific facts of your case and forming a plan for success.