Couples who have diversified their portfolios and who enjoy multiple streams of household income are at risk of more complicated divorces. Not only do they have more assets and debts to divide, but there is also an elevated risk of financial misconduct.
Complex financial circumstances make it easier for one spouse to engage in misconduct, such as intentionally hiding assets from the courts. Misunderstandings related to complex marital assets could also potentially arise. One spouse might accuse the other of hiding assets to inappropriately manipulate property division proceedings. In some cases, that concern may be valid. Other times, it may be a misconception on the part of one spouse.
How can concerned spouses address the possibility of hidden income or assets when preparing for divorce?
The right outside help can make all the difference
Complex marital estates often require the assistance of more than just an attorney. People may need help from forensic accountants as well. A forensic accountant is a financial professional who has experience or training in the analysis of financial records.
They can help identify discrepancies in bank statements and tax returns. They can also assist with asset tracing. Asset tracing is a complex process looking at where household money comes from and how spouses use that money. Asset tracing can help people identify hidden assets. It can also help someone accused of financial misconduct prove that they have made proper disclosures if no financial misconduct occurred.
In scenarios where hidden assets are present, the courts may consider proof of financial misconduct when making important property division decisions. Other times, working with a forensic accountant to review financial records could exonerate a spouse and allow property division proceedings to move forward without additional conflict.
Rather than hoping for the best or assuming that the courts can sort everything out, spouses who have enjoyed a comfortable standard of living during a marriage often need assistance preparing for court to avoid unfair outcomes. Those who understand their marital estate can pursue an equitable distribution of marital property.
Realizing that complex marital holdings might mean complex divorce proceedings can be beneficial for those unsure of what to expect during the property division process. A financial review performed by educated professionals can make a major difference in a complex divorce case.
