Posted by Nydia Streets of Streets Law in Florida Divorce
Can a spouse use funds in a joint account while a divorce is pending in Florida? Once a divorce case is filed, many courts in Florida have what is known as a status quo order. This order directs the parties not to disturb the status quo so that, for example, a spouse’s health insurance is not cancelled from one day to the next. This status quo rule may apply to funds in accounts. The use of cash is an issue discussed in the case Briggs v. Briggs, 1D21-1592 (Fla. 1st DCA April 20, 2022).
A petition for divorce was filed shortly before the parties’ 17th wedding anniversary. At the time of their separation, the parties equally divided $234,000 cash that was in a safety deposit box. By the time of trial, the former husband spent this amount on attorney’s fees and household expenses, leaving approximately $27,000 available. There was testimony at trial that the former husband took out distributions from his business at his discretion over the years to pay expenses. In the equitable distribution plan laid out by the court, the former husband was credited with the full $117,000 with the trial court reasoning that he should have taken distributions as he had historically done to cover expenses rather than using the cash. The former husband appealed.
The appellate court reversed, holding “We have consistently held that it is error to include in the equitable distribution scheme sums that have been diminished during the dissolution proceedings for purposes reasonably related to the marriage. [. . .] ‘Misconduct is not shown by mismanagement or simple squandering of marital assets in a manner of which the other spouse disapproves.’ Winder v. Winder, 152 So. 3d 836, 838–39 (Fla. 1st DCA 2014).” The court concluded “Here, the trial court did not find any misconduct on the part of the Former Husband in the depletion of the $117,000 cash asset. The uncontroverted evidence showed that he used $89,580 of the $117,000 to pay marital expenses incurred during the dissolution proceeding and that he had only $27,420 remaining. Therefore, the trial court erred by including the full amount of $117,000 in the Former Husband’s equitable distribution. Accordingly, we reverse that portion of the equitable distribution scheme with instruction to exclude the $89,580 used for expenses during the dissolution proceeding.”
Schedule your consultation with a Miami divorce attorney to learn more about how equitable distribution laws may apply to your case.