Category: Family Law

Hidden Income in Self-Employment Divorces

Self-employment can turn a Florida divorce into a numbers problem fast. A W-2 paycheck tells one story. A business bank account, credit card, and “write-offs” can tell another. When support or alimony turns on income, the court must separate real business expenses from personal spending that simply took a detour through the company.

This post explains how Florida defines business income, how “lifestyle” evidence can matter, and when a court may impute income if someone claims they earn less than they reasonably could.

Separate “Business Income” From Personal Spending Dressed as Expenses

Florida child support law counts income from self-employment and closely held businesses, calculating it by taking total revenue and subtracting only expenses that are reasonably necessary to generate that income.

That definition sounds simple, but disputes usually start here. A personal vehicle, travel, meals, or a home office can carry mixed use. The court can look past labels and ask a practical question: Did this expense truly help generate business income, or did it mainly support a personal lifestyle?

Clear records help. So does consistency between tax returns, bookkeeping, and what you list on your financial affidavit.

Use Lifestyle Evidence to Cut Through “Expense Noise”

Lifestyle evidence means proof of how someone lives; things like rent or mortgage payments, vehicles, travel, private school tuition, large purchases, or recurring transfers to savings. It does not replace financial documents. It supports them.

When a self-employed spouse reports low income but keeps spending at a high level, the other side often uses:

  • bank and credit card statements (personal and business)
  • payment apps and merchant records
  • loan applications and financial statements
  • business ledgers that show owner draws and reimbursements

This evidence can expose patterns like personal bills paid by the business, unusually high “business” reimbursements, or cash deposits that never show up on a profit-and-loss statement.

Know When Florida Courts May Impute Income

Imputed income means the court assigns an income level based on earning capacity instead of reported earnings. Florida law allows imputation when a parent’s unemployment or underemployment is voluntary, absent incapacity or circumstances beyond the person’s control. The judge can look at work history, qualifications, and local earning levels when setting a number.

Wickersham & Bowers handles Florida divorce matters involving support, custody, and financial disputes. Call 386-252-3000 or fill out our contact form.

Strategic Non-Disclosure in Divorce: How Hidden Financial Decisions Backfire in Court

Divorce brings enough stress on its own, and money is usually at the center of it. When someone feels cornered or worried about losing financial security, it’s easy to think that holding back information might help. Even minor omissions can create significant problems once the case reaches the courtroom.

Florida’s divorce process requires both spouses to exchange a complete picture of their finances. That means sworn financial affidavits, bank records, and tax returns. Judges rely on this information to make fair decisions. When one spouse hides income or moves assets around, it slows the case down and signals to the court that the person isn’t being straightforward. That’s a hard reputation to fix later.

Why People Hide Assets

People hide money for different reasons. They could be trying to protect a business or just angry and don’t want to share. In other cases, they assume their spouse won’t notice a transfer or a missing account.

But financial footprints are more complex to cover than most people think. Bank logs, tax documents, and digital payments usually leave a trail. When the other side uncovers something suspicious, the court may impose sanctions, reopen property division, or require the offending spouse to cover the other side’s legal fees.

What Florida Law Actually Requires

Under Florida Family Law Rule 12.285, both spouses must turn over specific financial documents early in the case. If one spouse files for temporary support, the court requires both sides to meet tighter disclosure timelines.

Courts take disclosure seriously. When a spouse drags their feet or withholds information, the judge can compel them to turn everything over, restrict what they can argue later, or impose fines. If the conduct looks deliberate, such as transferring money to a friend, things tend to go downhill quickly.

A Better Way to Handle Disclosure

The smoother path is simple: be organized and be honest. Pull together statements for accounts, property records, retirement balances, and any business documents. If you own a company, get a valuation early. When you’re upfront with your financial picture, your credibility increases, which is something judges notice.

Talk With Our Team

Divorce brings enough uncertainty on its own, and you don’t have to sort through the financial questions alone. Our team at Wickersham & Bowers is ready to help you move forward with confidence. Call 386-252-3000 or reach out through our contact form to get started.

Parallel Parenting Plans: A Solution for High-Conflict Florida Custody Disputes

Not all custody arrangements work well when parents are locked in constant conflict. For families dealing with ongoing disputes over schedules, school decisions, or healthcare, parallel parenting offers a more workable option. 

Instead of trying to co-manage every detail, each parent handles their own time with the child independently. Communication is limited and often done through parenting apps. 

Parallel parenting allows high-conflict parents to disengage from one another while still focusing on their children’s needs. Ongoing parental conflict can cause serious psychological and social problems for children. 

What Is Parallel Parenting?

Parallel parenting is a structured approach used when co-parents struggle to communicate without conflict. Each parent sets their own rules and routines during their scheduled time, and direct contact is kept to a minimum, usually limited to email or co-parenting apps. The aim isn’t to foster agreement, but to shield the child from tension. 

In some high-conflict cases, a Florida court may appoint a parenting coordinator under § 61.125. That person, often a trained mediator or attorney, helps parents stick to the plan, resolve logistical issues, and reduce the likelihood of ongoing disputes affecting the child’s well-being or daily care.

How to Build a Successful Parallel Parenting Plan

A good parallel parenting plan removes as much guesswork as possible. Start with a schedule that leaves no room for confusion: 

  • Specific pickup times
  • Clear drop-off locations
  • Holiday rotation everyone can follow

Communication rules are just as important. Many parents choose a written method, like email or a parenting app, to keep conversations brief and focused on the children.

The plan should also spell out who makes which decisions. One parent might handle medical choices while the other manages school matters, or both may need to agree on major issues. 

Families change over time, so the plan should allow updates as children grow. Some parents eventually shift to a more cooperative style, while others rely on parallel parenting long-term when conflict remains high.

We’re Here to Help

Parallel parenting can give structure and stability to families dealing with ongoing tension. At Wickersham & Bowers, we work with parenting coordinators and mental health professionals to build plans that put children first. To talk through your options, call 386-252-3000.

Splitting Retirement Accounts in Divorce: How QDROs Secure Your Share of 401(k)s and Pensions in Florida

In the case of a divorce in Florida, retirement benefits earned during the marriage (i.e., 401(k)s, IRAs, and pension benefits) are assumed to be marital property. The courts start off with a baseline assumption of equal distribution, but could deviate from this standard distribution depending on the statutory factors.  

Dividing these assets requires careful planning because most retirement plans are governed by federal law and can only pay benefits to the participant or an alternate payee pursuant to a Qualified Domestic Relations Order (QDRO). Without a QDRO, a plan administrator cannot legally divide and distribute benefits.

What Is a QDRO?

Federal law defines a QDRO as a court order that legally assigns part or all of a retirement plan benefit to an alternate payee, typically a spouse. To be qualified, the order must specify the amount or percentage to be paid, the names and addresses of the participant and alternate payee, and the number of payments or period to which it applies. It cannot provide for benefits not available under the plan or require different actuarial assumptions than the plan uses. 

How Florida Handles QDROs

For state employees, the Florida Retirement System (FRS) Pension Plan requires any domestic relations order dividing benefits to be submitted for approval. The FRS warns that processing a QDRO may take up to two months. The order often divides the marital portion of the pension benefits using a formula based on the length of the marriage versus total years of service. 

Payments to the alternate payee begin when the member retires and elects to receive benefits. For defined contribution plans like 401(k)s, the QDRO directs the plan administrator to transfer the alternate payee’s portion to a separate account or pay it outright.

Tax and Practical Issues

According to the IRS, distributions under a QDRO to a spouse or former spouse are taxable to the recipient, not the plan participant. If the alternate payee rolls the payment into an IRA, taxes can be deferred. 

QDROs are technical, and each plan has unique requirements. Therefore, it is wise to work with an attorney and contact the plan administrator early. Without a QDRO, you risk losing your share or incurring penalties for early withdrawal.

Call the Law Office of Wickersham and Bowers at 386-252-3000 or complete our intake form to schedule a consultation.

Unmasking Hidden Compensation in Divorce: Valuing RSUs, Stock Options, and Carried Interest Under Florida Law

Some of the most valuable assets in a divorce never show up on a paycheck. Equity compensation, like restricted stock units (RSUs), stock options, and carried interest, is often tucked away in bonus plans or private partnership agreements. These forms of compensation may not vest for years, but if they were earned during the marriage, they can still be divided under Florida law.

How Courts Divide Equity in Florida Divorce Cases

Florida law considers both vested and unvested RSUs and stock options marital property if awarded during the marriage and before a divorce is filed. To separate what’s marital from what’s not, courts often use a coverture fraction. This formula compares the time the couple was married during the vesting period to the total length of that period.

Take this example: If RSUs vest over four years, and the couple was married for two of them before filing, the marital portion would typically be 50%. Once the court makes that determination, it may order a lump-sum offset or set up a constructive trust to divide the asset as it vests.

Carried Interest in Divorce

Carried interest, or “carry,” is a profit share often earned by partners in private equity or venture capital. It vests over time and may depend on performance hurdles. 

In divorce, carried interest is usually treated as a business asset and valued based on expected payouts and risk. Florida law only includes enterprise goodwill in the marital pot, not personal goodwill tied to an individual’s skills or relationships.

Valuation often requires complex models, especially with clawback provisions and long vesting periods.

Why Daubert Matters for Financial Experts

Courts in Florida observe the Daubert standard for expert witnesses. In other words, any valuation expert must employ reliable techniques, such as the Black-Scholes method or scenario modeling, apply them properly, and base their entire analysis on reliable data. A weak report could be struck down totally, jeopardizing your case.

Let Us Help You Make the Right Case

At The Law Office of Wickersham & Bowers, we understand how to track, value, and protect hidden compensation in divorce. Whether you’re facing RSUs, carried interest, or stock options, our team can help you make a strong, court-admissible case. Call us at 386-252-3000 to schedule a confidential consultation.

Dividing Frozen Embryos: Legal Battles When Divorce and Family Planning Collide

Couples who go through in vitro fertilization (IVF) often freeze extra embryos for later. That works well until a marriage ends. Suddenly, a deeply personal plan turns into a legal battle. 

In Florida, frozen embryos do not fit neatly into child custody law or standard property rules, which means the dispute can be unlike anything else in divorce court. Let’s explore how state law approaches these cases and what you can do to avoid legal battles.

How Florida Law Handles Frozen Embryo Disputes

According to Florida Statute § 742.17, couples using IVF should have a written agreement that explains what happens to their embryos if they divorce, pass away, or change their plans. Without it, implanting, donating, or even destroying embryos cannot be done unless both people give written consent. In practice, that means either person can stop the other from using the embryos, no matter how strongly one might want to move forward.

The law gives courts something to enforce if a valid agreement exists. If not, Florida’s approach generally favors the right not to be forced into parenthood, even when the other spouse wants to use the embryos.

Lessons From Other States’ Battles

Other states have faced high-profile frozen embryo disputes. 

  • Davis v. Davis (Tennessee, 1992): The court sided with the spouse who wanted the embryos kept from use, pointing to the right to avoid becoming a parent. 
  • Kass v. Kass (New York, 1998): Judges enforced the couple’s agreement to donate embryos for research. The lesson? A signed, specific agreement can prevent years of litigation.

Protecting Your Wishes Before and During Divorce

If you’re starting IVF, talk through all the “what ifs” now. Decide what should happen if you split, if one of you dies, or if you change your mind. Put it in writing. 

If you are already in divorce and without an agreement, you will need legal guidance right away to understand your options under Florida’s consent rules.

At the Law Office of Wickersham & Bowers, we help clients make these decisions before trouble starts and fight for their rights when it has. If you’re planning IVF or already facing a frozen embryo dispute, call us at (386) 252-3000. 

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