Panama City Law Blog

When it comes to divorce, most people focus on equitably dividing tangible assets. However, courts may also look at assets one spouse owned before the marriage, but said asset has since grown in value over the course of the marriage. This is the enhancement of value, and it comes into play in divorces more often than you may think. 

In a landmark court case called Mitchell v. Mitchell, a husband owned a home prior to the marriage, but over the years, the couple enhanced it using marital funds. The court found that the upgrades to the house, mostly wallpapering, was negligible, but the house increased in value due to the passive force of the housing market. The court found this increase in value was marital property, and the couple had to divide the valuation accordingly. 

Divorce upends a family's life in a major way. There is a significant financial toll on both parties. There is also the question of who gets the family pet. 

Under Florida law, pets are personal property. This puts them on the same level as furniture and artwork. The court works to provide an equitable division of assets, so one party getting the pet may require giving something else up. While it can be a difficult topic, especially if both spouses are close to the pet, it is vital for both parties to work together to reach a consensus.  One solution is for the family pet to accompany the children when they transition to the other parent's home.  Another solution would be for spouses to have pet (property) sharing agreement whereby each party would continue to jointly own the pet and each have specified time with the pet.  If you are unable to reach an agreement on a pet, the divorce court judge will most likely just award the pet to one party or the other and place a monetary value on the pet, just like any other property. 

If you and your spouse have decided to end your marriage, you may dread the thought of a bitter court battle. However, litigation is not always necessary. There are other options to think about, one of which is a collaborative divorce. Would this be the best approach for you?

How it works

The division of marital assets is one of the most contentious topics to come up during a divorce. This is especially true if you have significant assets or own a business. You and your spouse must fully and honestly disclose your assets to the court, so they can be divided fairly. However, what if your spouse is not being truly honest and is attempting to come across as having much less money than he or she has? You and other Florida residents going through a divorce may worry that you will end up with an unfair division of property or less alimony and child support than you should be getting.

The fact that it is a crime to knowingly conceal assets does not deter many people from trying it. The following points illustrate some of the common ways in which your spouse might try to hide assets from you and the court:

• Drain the bank account and transfer the funds to a separate account you do not know about
• Get cash back when making regular purchases on a debit card, such as while grocery shopping, and hide the money
• Have a friend hold onto the assets until the divorce is final, which may technically not be marital property if the friend “owns” the assets, even temporarily
• Delay accepting a raise or promotion at work until the divorce is final, as well as delaying receipt of a commission or bonus
• Check the option to save this year’s tax refund for next year’s tax and receive a larger tax return, which you will not have access to after the divorce
• Charge vacations and expensive items to the company’s account instead of his or her personal account